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Pages 21-40 of 46

Pages 21-40 of 46

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Pages 21-40 of 46

Pages 21-40 of 46

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1893. NEW ZEALAND.

OCEAN MAIL-SERVICES (FURTHER PAPERS RELATIVE TO). [In Continuation of Papers presented on the 2nd August, 1892.]

Presented to both Houses of the General Assembly by Command of His Excellency.

SAN FEAN CISCO MAIL-SERVICE. MAINTENANCE OF SEEYIGE: IMPEEIAL CONTBIBUTIONS. No. 1. The Hon. the Pbemiee to the Agent-Geneeal. Premier's Office, Wellington, 14th July, 1892. Sir, — Beneioal of the San Francisco Service. I cabled you on the 24th ultimo, as per copy enclosed, to ask the Imperial Government to renew its contribution to the service for another year, or for two years ; and, if you considered an appeal likely to succeed, to urge for better terms. There may be a disinclination to increase the direct payment to the service, in which case the colony would have to be content with a reduction in the heavy American transit charges, which might be secured if the matter were suitably represented to the United States Post Office authorities by the London Post Office. I have, &c, W. B. Perceval, Esq., J. G. Waed, Agent-General for New Zealand, London. For the Premier.

Enclosure in No. 1. The Hon. the Peemiee to the Agent-Genebal. (Telegram.) Wellington, 24th June, 1892. Fei'sco service. Ask Imperial Government renew letter-payment one or two years. If likely succeed, urge better terms. ________ a _______^_

No. 2. The Agent-Genebal to the Hon. the Peemiee. Sib,— Westminster Chambers, 13, Victoria Street, London, S.W., 6th July, 1892. I have the honour to acknowledge the receipt of your cablegram of the 24th ultimo, instructing me to ask the Imperial Government to renew for one or two years the letter-pay-ment which it is at present making in respect to the mails forwarded by the San Francisco route, and further directing me to endeavour, if likely to be successful, to obtain more favourable terms than those existing at the present time as regards the apportionment of the cost of the service as between the Mother-country and the colony. Although I am under the impression that the Imperial postal authorities are not inclined to admit that they are in any way bound to incur a larger portion of the expenditure required to maintain this service than that which it falls to the lot of the colony to provide, I came to the conclusion, after careful consideration, that it would be right, in the interests of the colony, to lay before the Imperial Government as succinctly and fully as possible the various points which I thought might in any way influence its decision. I also felt that, to bring the matter to anything like a speedy settlement, it would be expedient to make a definite proposal. I therefore addressed a letter to the General Post Office (copy of which I herewith transmit), in which, after recapitulating the successive changes that have taken place in previous years as regards the terms of the apportionment, I proceeded to point out certain considerations for the purpose of showing the value of the service—how desirable it was that it should be maintained, and that the colony had grounds for claiming that the Imperial Government should recognise that it I—F. 6.

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occupied an exceptional position and merited exceptionally favourable treatment; and I concluded by asking that the existing apportionment be renewed, but so modified as to provide for the Imperial Government providing free carriage both ways between New York and London. You will see that I have also asked for a speedy reply, but I fear that the general election at present proceeding in this country will stand in the way of any very prompt decision on the part of the Imperial Government. I have, &c, The Hon. the Premier, Wellington. W. B. Peeceval.

Enclosure in No. 2. The Agent-Gekeeal to the Secretary, General Post Office, London. Sik,— Westminster Chambers, 13, Victoria Street, London, S.W., 4th July, 1892. Eeferring to the correspondence which took place last year respecting the mail-services between the United Kingdom and New Zealand, I have the honour to inform you that I have received instructions from my Government to communicate with the Imperial Government with the view of making arrangements for the renewal of the mail-service which at present exists between the two countries, vid San Francisco. I will first take the opportunity of recapitulating the successive changes that have been made in the apportionment between the United Kingdom and New Zealand as regards the cost of this mail-service. For many years prior to 1890 the apportionment was as follows : (1) New Zealand retained all the Homeward postages ; (2) the United Kingdom paid New Zealand 13s. per pound on outward letters, Is. 2d. per pound on books, and 3-Jd. per pound on newspapers ; (3) the United Kingdom was provided with free carriage of mails between San Francisco and the colony; and (4) New Zealand was provided with free carriage between San Francisco and London. In 1890 the above apportionment was altered to the following, namely: (1) Each country still retained its own postages; (2) the United Kingdom paid New Zealand 12s. per pound on outward letters only ; (3) the United Kingdom was provided with free carriage between San Francisco and the colony ; (4) New Zealand was provided with free carriage between New York and London; and (5) each country paid the cost of the land-transit of its own mails between San Francisco and New York. Last year a further modification was made, under which the United Kingdom's contribution was reduced to 11s. per pound on outward letters, and New Zealand had to pay the cost of the Atlantic transit of the Homeward mails. Thus it will be seen that each successive modification that has been made has been less favourable to New Zealand ; and so much has this been the case that my Government considers it is justified in asking the Imperial Government to recognise, as has been done in past years, that the exceptional position of New Zealand merits exceptionally favourable treatment at its hands, and in expressing a hope that this will have due weight now that the time has arrived for the renewal of the service, and that, therefore, an apportionment more favourable to the colony than that which at present exists may be mutually arranged. My Government feels confident, however, that in dealing with this subject the Imperial authorities will not fail in the first place to bear in mind that the San Francisco service is the speediest and most reliable mail-line between the Mother-country and the colony. At one time it was considered probable that a mail-service would at an early date be established vid Vancouver which would supersede the San Francisco service, but at the present time there would appear to be no likelihood of such a service coming into operation—at all events, for some years to come. Notwithstanding this, it is to be hoped, having regard to the interests of the British Empire, that a mail-service will eventually be established vid Vancouver, so that it may pass through British territory only, and, with that prospect in view, it is, I venture to point out, important that meanwhile the present communication by the Pacific with Australasia should be satisfactorily maintained. I would also refer to the fact that, in consequence of there being no contract service between New Zealand and Australia, the Federal service is an unreliable one for rapid delivery, and the contract with the Direct steamers not having been renewed, the San Francisco mail-service is not only the speediest between the United Kingdom and New Zealand, but it is the only one that can be regarded with any degree of satisfaction. It should also, in considering the subject, be borne in mind that, as regards the sea- and landtransit between London and San Francisco, the available service for the mails will be maintained whether the New Zealand mails are sent by that route or not; but, as regards the service from San Francisco to the colony, that service would in all probability be discontinued were it not for the subsidy it receives for the conveyance of the mails ; and this all-important link my Government has had, though under circumstances often difficult and perplexing, to meet the responsibility of maintaining. With regard to the cost of the territorial transit between San Francisco and New York, my Government understands that the efforts made to procure a reduction in the transit charges have been futile. This circumstance is an additional proof that the service is not one that can be conducted strictly in conformity with Postal Union principles, and that it is therefore scarcely consistent with previous action on the part of the Imperial Government to make, as was done last year, an exceptional application of such principles as regards the Atlantic service. And I think it right, in the interests of my colony, also to allude to the fact that New Zealand gave a loyal acceptance to the proposal of Her Majesty's Government as regards the reduction of the postage from 6d. to and that in doing so it suffers a serious diminution in the amount of

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its postal revenue, and that the greater part of such loss is in respect to the letters sent by the San Francisco mails. Moreover, the acceptance of that proposal has resulted in a demand, for the reduction of its own inland postage from 2d. to Id., involving an estimated loss of £40,000 a year. I will also point out that the Imperial Government avoids a considerable expense, first, by the discontinuance of the contract mail-service by the Direct steamers, and, secondly, by the nonestablishment of any contract mail-service between New Zealand and Australia, which latter is essential in order to make the Federal mail-service an alternative one of corresponding value to New Zealand to that via San Francisco. I have therefore, on behalf of my Government, to propose, for the consideration of the Imperial Government, that the present terms of apportionment be renewed, with one exception—namely, that the Imperial Government will provide free carriage both ways between New York and London, and that such renewal shall continue for one or two years, whichever period may be preferred by the Imperial Government. I have further to state that, as the New Zealand Parliament is now in session, it is important that as speedy a reply be given to this proposal as possible, in order that the necessary appropriations may be voted before the session terminates. I am, &c, The Secretary, General Post Office, E.G. W. B. Peeceval.

No. 8. The Hon. the Peemiee to the Agent-Geneeal. (Telegram.) Wellington, 24th August, 1892. What reply, Frisco renewal ?

No. 4. The Agent-Geneeal to the Hon. the Peemiee. (Telegram.) London, 25th August, 1892. Impeeial Government write fifteenth declining renew Frisco apportionment except on strict Postal Union basis. Am protesting. Instruct whether you wish me appeal new Postmaster-General. Telegraph particular instruction or proposal.

No. 5. The Hon. the Peemiee to the Agent-Genebal. (Telegram.) Wellington, 30th August, 1892. Fe'isco. Appeal Postmaster-General renew present terms. Quickest route. Imperial Government already saved largely Frisco, Direct, services. Exceptional position colony entitles special consideration. Confident appeal succeed.

No. 6. The Hon. the Peemiee to the Agent-Genebal. Sib, — Premier's Office, Wellington, 31st August, 1892. I have the honour to acknowledge the receipt of your communication of the 6th ultimo, covering copy of the letter you addressed to the Imperial Post Office on the 4th idem, seeking a renewal of the present contribution towards the cost of the San Francisco mail-service for one or two years. In your admirable letter to the Post Office you put the case for the colony very forcibly; and I was indeed disappointed to receive your cablegram of the 25th instant, announcing that the Imperial Government declined to renew the apportionment except on a strict Postal Union basis, to which I cabled you on the 30th instant in reply, approving of your appeal to the new PostmasterGeneral. You made one slip, however, in your letter to the London Post Office in the statement that the United Kingdom's contribution was now reduced to 11s. per pound on outward letters. As a matter of fact, the rate agreed to be paid by the Imperial Government was "up to 125." per pound for letters; and at this rate the colony has been and is now being credited. The Post Office may have pointed out the error, which, however, does not materially affect the point you were discussing. There can be no question that the colony, in its exceptional position in respect of ocean mailcommunication, as well as by the consistent efforts which it has made for many years past to maintain the Pacific service in spite of difficulty and discouragement, has a claim on the Imperial authorities —indeed, they have admitted this. The San Francisco service itself presents a strong argument in favour of its maintenance in the rapid exchange of correspondence between the Mothercountry and the colony. It is not only, in offering appreciably the quickest route, of the most advantage to the mercantile communities, but it is also the most efficient from a postal point of view. There is no uncertainty at this end in the time-table, and no harassing break in its course. The service via Italy, with which the Imperial authorities desire to supersede the San Francisco service, cannot be regarded as so well suited to the needs of this colony : the transit of mails thereby is neither so rapid nor is the delivery so free from irregularity. And this irregularity, and consequent unreliableness, must characterize the Brindisi-Naples route so long as the Imperial Government does not think it necessary to maintain or subsidise a connecting service between Australia and New Zealand.

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As I have said in my telegram, the London office has already made a considerable saving in connection with the San Francisco and Direct services, the latter having been abolished and the contributions in aid of the former materially reduced. A more liberal treatment of the San Francisco service by either substantial increase of the payment in aid, or relieving the colony of the burden of the transit charges by an appreciable reduction in the rates or otherwise, would, under the circumstances, be scarcely more than justice. I think you might again with propriety urge the argument of the presumed desire of the Imperial Post Office to sooner or later establish a service via Vancouver, to the present advantage of the San Francisco service. It is understood here that the continuance of the latter is desired in London, as a means of maintaining the Pacific connection with these colonies until a Canadian Pacific service is an accomplished fact. The intention to enforce Postal Union principles so long as the high territorial rates for the United States transit are retained seems to me both illogical and illiberal. Not only so, but it is inreality inequitable, for even the present payment for conveyance of the large quantity of English mail-matter which is transported by the San Francisco service cannot be regarded as a fair recompense. Seeing that the change will involve a difference of something less than £2,000 a year—an amount of little consequence to the Imperial Post Office against the advantages which it now does, and may in the future be expected to, secure —I cannot but express surprise that any such proposal should, have been made just now. The service is no longer a source of profit to the colony. There was a loss of £3,454 last year, and the current year will show even a worse result. In view of the facts of the case, I cannot but think that the justice of your appeal will be substantially recognised ; and it is confidently hoped that, if the colony is not to be relieved of the heavy transit charges, they will be materially reduced. I enclose copy of your telegram and of my reply. I have, &c., A. J. Cadman, W. B. Perceval, Esq., Agent-General for New Zealand, London. For the Premier.

No. 7. The Agent-Genbbal to the Hon. the Peemiee. Sic, — Westminster Chambers, 13, Victoria Street, London, S.W., 19th August, 1892. Following up my letter of the 6th July last, in which I sent you a copy of my letter to the General Post Office on the question of the renewal of the present contract regulating the San Francisco mail service, I now beg leave to transmit herewith copy of a letter from that department in reply thereto. I have, &c, The Hon. the Premier, Wellington. W. B. Peeceval.

Enclosure in No. 7. The Seceetaby, General Post Office, London, to the Agent-Genbeal. Sic, — General Post Office, London, 15th August, 1892. The Postmaster-General has had under consideration, and has forwarded to the Lords Commissioners of Her Majesty's Treasury, the letter of the 4th of last month which you addressed to this department in view of the approaching expiration of the year for which Her Majesty's Government decided to continue the support of the colonial mail-packet service between San Francisco and New Zealand by paying at an exceptional rate for the outward Pacific service. In that letter you apply on behalf of the colony not merely for a continuance of the present support after November next when the arrangement expires in due course, but for increased aid in the form of a reversion to that part of an earlier arrangement whereby this department paid for the conveyance of the New Zealand mails for England across the Atlantic. Having carefully weighed the circumstances detailed in your letter, the Lords Commissioners of the Treasury and the Post-master-General regret to find themselves unable to consent to any further prolongation of the exceptional arrangement connected with the service in question. That service, and the apportionment of its cost, for years formed the subject of voluminous correspondence between this department and the representatives of New Zealand, and it is unnecessary at this time to re-state the grounds of the opinion formed some time since, that it was desirable to put a term to the exceptional arrangements. It is thought that the time is now come when the New Zealand Government may fairly be expected to conform to the Postal Union system in this as in other respects, and that there is no reason for reverting to an arrangement which has been definitely abandoned as pressing unduly upon the Imperial Post Office. lam to state, therefore, that, commencing next November, this department will not be prepared to pay at an exceptional rate for the conveyance of mails for New Zealand and Australia by the colonial packet service from San Francisco; and I am about to request the colonial Post Office to make arrangements for adjusting the accounts with this department connected with the service in question on the basis of the Postal Union Convention. I am, &c, W. B. Perceval, Esq., Agent-General for New Zealand. S. A. Blackwood.

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No. 8

The Agent-Geneeal to the Hon. the Pbemiee. Westminister Chambers, 13, Victoria Street, London, S.W., 2nd September, 1892. Sic, — Renewal of the San Francisco Service. On the 19th ultimo I forwarded you a copy of the letter I received from the Secretary of the General Post Office, in which he regrets that the Lords Commissioners of the Treasury and the Postmaster-General find themselves unable to consent to any "further prolongation of the exceptional arrangement connected with the service in question." On the same day I received your letter of the 14th July, confirming your cable of the 24th June, instructing me to ask for a renewal of the contribution of the Imperial Government for another year or for two years. I have, since the receipt of the letter from the General Post Office of the 15th ultimo (received by me on the 17th), been in communication (by letter) with the General Post Office on the subject, and have also visited the officials at the General Post Office to discuss the matter with them personally. Although the letter of the 15th instant appeared to indicate that the General Post Office would not give way, I incline to think that the representations I have made by letter and in person have not been without effect, and I hope that I shall succeed in getting the Post Office to reconsider their decision. As the matter is pressing, I shall endeavour to obtain a favourable reply to the wishes of the Government at the earliest possible moment, and as soon as I do so will cable you. I have no doubt the matter will be finally concluded before this reaches you, but by next mail I will forward copies of the correspondence which has taken place between me and the Post Office as a record of the proceedings. I have, &c, The Hon. the Premier, Wellington. W. B. Peeceval.

No. 9. The Seceetaby, General Post Office, London, to the Hon. the Postmastee-Geneeal. Sib,— General Post Office, London, 3rd September, 1892. In view of the approaching expiration of the year for which Her Majesty's Government decided to continue the support of the colonial mail-packet service between San Francisco and New Zealand by paying at an exceptional rate for the outward Pacific service, I beg leave to inform you, as you will doubtless already have learned from the New Zealand Government, that it has now been decided to adhere strictly to the Postal Union system in regard to the apportionment of the cost of the mail-service in question. I am directed by the Postmaster-General to state, therefore, that, commencing next November, this department will cease to pay at an exceptional rate for the conveyance of mails for New Zealand and Australia by the colonial packet service from San Francisco; and I am to request that you will be good enough to make arrangements for preparing the accounts with this department, connected with the service in question, on the basis of the Postal Union Convention. I should add that the proportion of the Union rates payable for the Pacific section of the service will be lOfr. per kilogramme of letters and post-cards, and 50c. per kilogramme of other articles. I have, &c, H. BuXTON FOBMAN, The Postmaster-General, Wellington. For the Secretary.

No. 10. The Hon. the Peemiee to the Agent-Geneeal. (Telegram.) Wellington, sth September, 1892. Fe'isco. Imperial Post Office now pays twelve, not eleven shillings.

No. 11. The Agent-Genebal to the Hon. the Peemiee. (Telegram.) London, 29th September, 1892. Impeeial Post Office declines alter decision not pay more than the amount Postal Union rates, Pacific service. Propose, unless instructions are received contrary, ask mediation Colonial Office.

No. 12. The Hon. the Postmastee-Gbnekal, Wellington, to the Hon. the Postmastee-Geneeal, Sydney. (Telegram.) Wellington, 17th September, 1892. Fb'isco Service. —Imperial Post Office declines renew apportionment cost Frisco service except on strictly Postal Union lines. We have therefore to bear full cost transit across America and Atlantic on Homeward mails, while contractors' receipts for conveying London mails from San Francisco to colony will be reduced by about two thousand a year. There is danger of service falling through unless loss made up to contractors, who state that the service is not at present paying, and that they have been continuing in hope of business improving and their obtaining better terms from America. The service is of great benefit to your colony, as, besides quick direct mail communication with United States, you also secure the advantages and expenditure from being the terminal port. Last year your payments amounted to two thousand eight hundred and seventy-nine

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pounds only, not at all commensurate with the benefits derived by your colony in general and business people in particular. This year the cost will be even less, as rate for letters reduced from twenty-five and fourpence to twelve shillings per pound. I therefore appeal to you to agree to increase your payment to five thousand pounds, and to prevent withdrawal of service, which, commercially, is of greater advantage to New South Wales than it is to this colony. Hope for your practical sympathy in the desire for continuance of service.

No. 13. The Hon. the Postmasteb-Geneeal, Wellington, to the Hon. the Postmastbe-Geneeal, Sydney. (Telegram.) Wellington, 30th September, 1892. Fe'isco service and my telegram of 17th. Very anxious for early and favourabe reply, as renewal should be fixed up next month. No prospect Imperial Government contributing except on Postal Union terms. You will not, I feel sure, be disposed to allow service to drop for a matter of two thousand pounds. Trust to hear that your Government agrees to contribute five thousand pounds.

No. 14. The Hon. the Peemiee to the Agent-Genebal. Sib,— Premier's Office, Wellington, 6th October, 1892. Referring to my letter to you of the 31st August, on the subject of the renewal of the San Francisco mail-service, I have now the honour to enclose copy of correspondence in connection therewith which has taken place since the departure of the last month's San Francisco mail. It was a disappointment to the Government to learn from your last telegram that your second application to the Post Office had been likewise unsuccessful, and I am now doubtful whether your appealto the Colonial Office will result favourably, as, apparently, there is a fixed determination not to renew on present terms. The Postmaster-General has approached the Sydney Post Office, and asked that it should make up to the contractors the loss of about £2,000 which will result from the decision of the Imperial Post Office to contribute only on Postal Union lines. No official reply has been received, but Press reports indicate that the New South Wales Government may entertain the application. In any case, I am hopeful that the service will not be abandoned this year, as the probably large passenger-traffic which is sure to follow the opening of the Chicago Exhibition will in itself be an inducement to the contractors to continue, irrespective of the loss of subsidy. I have, &c, W. B. Perceval, Esq., J. G. Waed, Agent-General for New Zealand, London. For the Premier.

Enclosure to No. 14.—(See Nos. 11, 12, and 13.)

No. 15. The Seceetaey, General Post Office, to the Eesident Agent for New Zealand, San Francisco. Post Office and Telegraph Department, General Post Office, Wellington, Sib,— 6th October, 1892. In reference to my letter to you of the 31st August [see No. 68], and, in particular, to the last paragraph thereof, I have now the honour to inform you that the Agent-General has appealed against the decision of the Imperial Post Office to restrict its contribution in aid of the San Francisco service to the amounts prescribed by the Postal Union regulations. He has twice represented the matter to the Imperial Government, and now notifies the result as a distinct refusal to contribute on any other than the Postal Union basis. In view of the loss to the contractors, the Hon. the Postmaster-General has communicated with the New South Wales Post Office asking for a contribution bringing its payment towards the cost of the service up to £5,000. This, if it be agreed to, as the cablegrams state it most likely will be, will make good the loss which otherwise woitld fall upon the contractors. I have, &c, E. J. Creighton, Esq., W. Geay, Secretary. Eesident Agent for New Zealand, San Francisco, California.

No. 16. The Seceetaey, General Post Office, to the Managing Dieectoe, Union Steam Ship Company. Post Office and Telegraph Department, General Post Office, Wellington, Sib,— 10th October, 1892. I have the honour, by direction of the Hon. the Postmaster-General, to ask whether your company is prepared to renew the contract for the San Francisco mail-service for twelve months from the expiration of the current period on the terms of the reduction in the amount of the contribution from the Imperial Post Office, the other terms remaining as at present. The reduction, following the determination of the British Post Office not to contribute to the cost of the service

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otherwise than strictly on the basis of the Postal Union Convention, involves a loss to the contractors of about £1,975 a year. As it is necessary that I should have the earliest intimation of your intentions, with a view to issuing time-tables, &c, I shall be glad if you will telegraph a short reply as soon as possible. I have, &c, The Managing Director, W. Gray, Secretary. Union Steam Ship Company of New Zealand (Limited), Dunedin.

No. 17. The Hon. the Peemieb to the Agent-Genebal. Sib,— Premier's Office, Wellington, 12th October, 1892. I have the honour to acknowledge the receipt of your two letters of the 19th August and the 2nd September, on the question of the renewal of the San Francisco mail-service. With the first you enclosed copy of the reply from the Imperial Post Office to your letter of the 4th July, and in the other promise a cablegram announcing the result of the further representations which you had made against the decision not to prolong the existing apportionment at any renewal of the contract. My letter of the 6th instant gives you the views and notifies the action of the Government after receiving your cablegram conveying the intelligence that the decision had not been reversed or modified. I have, &c, W. B. Perceval, Esq., J. G. Waed, Agent-General for New Zealand, London. For the Premier.

No. 18. The Hon. the Postmasteb-Gbneeal, Sydney, to the Hon. the Postmastee-Genebal, Wellington. (Telegram.) Sydney, 11th October, 1892. Eβ Frisco. We are disposed to do something, but cannot see our way to extent proposed. Hear you have been negotiating with company and other colonies. Would like to know what extra remuneration company expect or what proportion of total subsidy the amount you ask from us represents.

No. 19. The Hon. the Postmastee-Genbeal, Wellington, to the Hon. the Postmastee-Genebal, Sydney. (Telegram.) Wellington, 15th October, 1892. Fb'isco. Exceedingly disappointed your Government has not yet seen its way to contribute five thousand. In exceptional position of the service I regarded amount as a minimum one. Contractors also lose nearly three thousand because of reduction in rate for letters from non-contracting colonies under which your office probably save about a thousand pounds this year. Contractors apply to have loss caused by London's decision made up, and also urge that they have a claim for consideration in consequence of reduction made non-contracting colonies. It is estimated that contractors will receive about twenty thousand, your live thousand therefore about one-fourth. Have not communicated with other colonies, as only a matter of two or three thousand pounds involved, and, moreover, they have not hitherto directly contributed to service. Confidently hope you will now agree to give five thousand especially as greatest pecuniary gain from service is undoubtedly to your colony.

No. 20. The Hon. the Postmasteb-Genebal, Sydney, to the Hon. the Postmasteb-Gbnebal, Wellington. (Telegram.) Sydney, 17th October, 1892. What I am desirous of knowing is what direct subsidy outside of postages, &c, it is proposed to pay company, and what proportion of this direct subsidy your colony is to bear. If you will kindly state this, will consider matter further. You are mistaken in supposing that we save under present arrangement. It is just the opposite. The twenty-five shillings and fourpence was covered by the postages ; the twelve shillings leaves loss of about two shillings a pound.

No. 21. The Hon. the Postmaster-Geneeal, Wellington, to the Hon. the Postmasteb-Gbnebal, Sydney. (Telegram.) Wellington, 18th October, 1892. Conteactobs apply for about three thousand, over and above postages, to make up London loss and partly recoup loss from reduction made non-contracting colonies. You are asked to bear full amount, making your total payment live thousand, although you are now liable for about a thousand less than last year. lam aware, of course, you make a loss on the letters, but you must

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recognise that our position far worse than yours. I would also remind you that when I agreed to reduction, which I tacitly did at Sydney Conference last year, there was no idea that letter postage would be reduced. Hope now made position clear, and that I shall receive early reply that you agree contribute five thousand.

No. 22. The Hon. the Postmastee-Geneeal, Sydney, to the Hon. the Postmastbe-Geneeal, Wellington. (Telegram.) Sydney, 19th October, 1892. Eegeet you are still silent as to amount of your direct subsidy ; and I must be clear on this point before submitting matter to my Government and Parliament. I understand all colonies using service pay certain poundage rates, about equivalent to postages collected, thus far contributing on equal basis and terms. If, in addition to these payments, a direct subsidy is required, we must know the amount proposed to be paid by each. If New South Wales is to be the only colony asked to pay direct subsidy, regret I cannot see my way to agree.

No. 23. The Hon. the Postmastee-Geneeal, Wellington, to the Hon. the Postmastee-Genebal, Sydney. (Telegram.) Wellington, 20th October, 1892. Fe'isco.—We make no direct subsidy payment, but on postage basis we pay about seven thousand, besides six thousand for American and Atlantic transit. On present rates I estimate that your colony will pay about two thousand; Victoria, fifteen hundred ; Queensland, three thirty; South Australia, one hundred; Tasmania, one twenty. The colonies mainly interested are New South Wales and New Zeal-and, as they derive greatest benefits from service. Our payments largely in excess of yours, while your colony secures advantages of terminal port. I am only asking you to increase your payment to keep service running. As we are paying between thirteen and fourteen thousand, impossible we can pay more. I should regret exceedingly if service were abandoned, and I hope you are also averse to its being dropped.

No. 24. The Agent-Geneeal to the Hon. the Peemiee. (Telegram.) London, 21st October, 1892. Insteuct whether Imperial Post Office shall continue despatch Frisco mail usual dates. Imperial Post Office giving apportionment further consideration.

No. 25. The Hon. the Peemiee to the Agent-Geneeal. (Telegram.) Wellington, 22nd October, 1892. Despatch Frisco mail usual dates.

No. 26. The Seceetaky, General Post Office, Wellington, to the Seceetaey, General Post Office, Sydney. (Telegram.) Wellington, 22nd October, 1892. Fe'isco : We estimate £4,254 American, and £1,769 Atlantic transit and our payments to company £7,170, inclusive of £1,050 for United States and other mails. Twenty thousand, roughly estimated : following figures give £19,090 : From New Zealand, £7,170; from London, £4,700; from noncontracting colonies, including Fiji and other islands, but excluding New South Wales, £2,220; New South Wales, £5,000. Contractors receive American postages, but I am unable to say what they amount to. Union Company does not know either, as there has been a change, it is believed, since twopence-halfpenny rate adopted.

No. 27. The Hon. the Postmastee-Genebal, Sydney, to the Hon. the Postmastee-Genebal, Wellington. (Telegram.) Sydney, 26th October, 1892. Subject approval Parliament, which we will endeavour to obtain immediately, Government agrees to pay lump sum of four thousand for one year towards Frisco service, on understanding this is in full of all claims for use of service, including gratuities now paid for conveyance to Auckland, but excluding American transit-rates on Canadian mails, and American and Atlantic transit-rates on European mails. We feel this is utmost can submit to Parliament, although according to your figures you lose six thousand on Frisco service, assuming, as I do, that no portion of American transit will be shared by contractors, as it appears is now done. You will remember reduced postage affects us all. It has increased our loss on Suez service (which only costs you three hundred) from five hundred to thirteen thousand. We estimate that the four thousand now offered will leave loss of two thousand on Frisco.

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No. 28. The Hon. the Postmasteb-General, Wellington, to the Hon. the Postmaster-General, Sydney. (Telegram.) Wellington, 3rd November, 1892. Frisco Service.—Your offer of £4,000 for one year accepted on the terms stated in your cable of 26th ultimo, Union Company agreeing to forego payment of gratuities on your mails for New Zealand. First mail under renewed arrangement left London on 29th ultimo, and leaves Sydney on 28th instant, and every four weeks thereafter.

No. 29. The Managing Director, Union Steam Ship Company, to the Secretary, General Post Office. Union Steam Ship Company of New Zealand (Limited), Dunedin, 12th October, 1892. Deae Sir, — Ke San Francisco Service. I have to acknowledge receipt of your telegrams of yesterday's and to-day's dates [not printed], and thank you for the extracts from the cablegrams of the Hon. Mr. Ward to the Postmaster-General of "New South Wales. My advices to Mr. Jackson, our Sydney manager, should have made it plain to him that the £5,000 being asked for included Sydney mailage : that is to say, that the £5,000 was made up of Sydney mailages, £3,000, plus the estimated loss to contractors, £2,000. I, however, repeated this by cable yesterday. In reply to your inquiry of to-day as to the rates being paid by the United States Post Office under the present renewal, I wired you as follows: "United States Government appear to be continuing payment of $60,000 per annum. Letters by this mail advise United States Post Office have rendered statement for quarter ending 30th June last on basis $60,000 subsidy as provided in the order of 9th January, 1891. There were four steamers in June quarter, namely, 'Monowai' twice, on April 2nd and June 25th, from Frisco, and American steamers once each. Subsidy of $15,000 per quarter therefore divided thus : American steamers $3,750 each, ' Monowai' $2,750 each trip, being deduction of $1,000 per trip for English steamer. In remaining quarters there will be only three departures, which will give $5,000 each to American steamers and $4,000 to ' Monowai.' Payment on this basis appears to have been made for ' Monowai' trip January last. Am sending you copy of letter;" and trust the information is what you ask for. The United States Government appear to be continuing the same payments as last year, viz., $60,000 per annum, subject to a deduction of $1,000 per trip from the " Monowai," on account of her being an English steamer. Of the thirteen trips in the present year the American boats will run eight and the "Monowai" five, so that the distribution of the $55,000 will be $37,500 to the American boats and $17,500 to the " Monowai." I enclose copy of our San Francisco advices, received by last mail; also copy of the Postal Department's communication to Messrs. Spreckels, notifying the method of settlement. Yours, &c, T. W. Whitson, W. Gray, Esq., Wellington. For Managing Director. p.S.—Since writing the above I have re-read my Frisco letters, and find the settlement for June quarter was in completion of the fiscal year closing 30th June, so that it is not certain that the United States payment is being continued at the same rate of $15,000 per quarter for the remaining six months of the present renewal. I have just wired you this view in case you may be basing calculations on my first message. —T. W. W.

Enclosure 1 in No. 29. Extract from Messrs. Spreckels' Letter of the sth September, 1892. " I beg to inform you that I have received a statement from the Superintendent of Foreign Mails, for services rendered by our ships in conveying the Australasian mail originating in the United States for the June quarter, 1892, in which a deduction of $1,000 is made from the earnings of the ' Monowai' for each trip in said quarter, under the Postmaster-General's order of the 9th January, 1891. "As I considered that your ship was entitled to an additional thousand dollars under this order, I at once wrote and called Mr. Brooks' attention to what I considered an error in the statement, and asked that the ' Monowai' should have that amount placed to its credit. In reply, I received a letter (copy enclosed) which settles the point against your ship, seeing we have no resource but to submit to the ruling of the department. Last year we received no pay for an entire trip of one of our ships."

Enclosure 2 in No. 29. The Superintendent of Foreign Mails, Washington, to the Oceanic Steamship Company, San Francisco. Post Office Department, Office of Foreign Mails, Washington, D.C., Sib,— 26th August, 1892. I have to acknowledge receipt of your letter of the 17th instant relative to the allowance of $13,000 as compensation for the services rendered by the steamers of your company in conveying 2—F. 6.

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the United States mails from San Francisco to the Australasian Colonies during the quarter ended the 30th June, 1892, of which allowance you were advised by my letter of the 10th instant, the service in question consisting of four trips—one each by the American steamers "Alameda" and " Mariposa," and two by the foreign steamer " Monowai." The second paragraph of your letter under reply is as follows : "I would call your attention to the fact that an apparent error of $1,000 has been made in the case of the foreign steamer ' Monowai.' This ship made two trips in the June quarter, for one of which only does she receive payment. This entitled her to $4,000 under the order of the 9th January, 1891, but a deduction of $2,000 (being $1,000 for each trip) has been made, which is $1,000 less than she would receive if she only made one voyage." With reference to the foregoing, I have to inform you that the allowance of $13,000 for the service in question is in accordance with the Postmaster-General's order dated the 9th January, 1891, a copy of which was transmitted to you with my letter of the same date, which provides for the payment to your company of an annual compensation of $60,000 for thirteen trips per year in vessels of United States register, less $1,000 per trip for each trip performed by a vessel of foreign register; payment to be made quarterly, at the rate of $15,000 per quarter; and, if less than thirteen trips are made during one year, a deduction of one-thirteenth part of $60,000 shall be made for each trip less than thirteen. During the fiscal year ended 30th June, 1892, the vessels of your company made thirteen trips, including two trips made by the foreign steamer " Monowai " during the last quarter ; so that the amount authorised to be paid for the service is $60,000, less the deduction on account of the foreign vessel hereinbefore mentioned. During the first three quarters of the year three trips were made each quarter, but during the last quarter four trips were made, thus completing the thirteen trips required. If less than four trips had been made during the June quarter the payment for that quarter would have been $15,000, less (one-thirteenth of $60,000) $4,615-39 = $10,384-61. If all the four trips had been performed by American vessels the payment would have been $15,000, which would have been an average payment per vessel of $3,750 ; but as two of the trips were performed by a foreign vessel, the sum of $1,000 was deducted for each of the foreign vessel's trips, which left the amount payable for the quarter's service $13,000, and the average payments per trip to the American vessels $3,750, and to the foreign vessel $2,750. In this connection your attention is invited to my reply, under date 11th September, 1891, to your letter of the 2nd of the same month. I am, &c, N. M. Bbooks, Mr. A. B. Spreckels, Superintendent of Foreign Mails. Vice-President, Oceanic Steamship Company.

No. 30. The Seceetaey, General Post Office, to the Managing Dieectoe, Union Steam Ship Company. Post Office and Telegraph Department, General Post Office, Wellington, Sib,— 21st October, 1892. I have the honour to acknowledge the receipt of your letter of the 12th instant, in reference to the renewal of the San Francisco service. I am obliged to you for the copy of the letter of the 26th August last, from the Superintendent of Foreign Mails to Mr. Spreckels. I note that you understand, on the information there given, that the United States Government is contributing to the cost of the service at the rate of $60,000 a year. I shall be very pleased to hear that this amount is being paid, but I scarcely think it is the fact. I have received no definite information from Sydney, and the latest telegrams show a disposition on the part of the Government of New South Wales to recede from a favourable attitude towards the service, and not to increase the payment in aid. I have, &c, The Managing Director, W. Geay, Secretary. Union Steam Ship Company of New Zealand (Limited), Dunedin.

No. 31. The Agent-Genebal to the Hon. the Peemiee. Westminster Chambers, 13, Victoria Street, London, S.W., Sib,— 9th September, 1892. I beg to forward herewith copies of the further correspondence which has passed between myself and the General Post Office, up to date, on the subject of the renewal of the San Francisco service. I have put the case for the colony as forcibly as I could, and the demands made on behalf of the colony appear to me so reasonable, and the attitude now taken by the Post Office so untenable, that I hope that my letter of the 3rd instant will meet with a favourable reply. You will, however, note that the reply letter of the 6th, received by me from Mr. Buxton Forman on behalf of the Secretary of the Post Office, seems to indicate that the decision of the Post Office and Lords Commissioners, announced in the previous letter of the 15th August, will be adhered to. I shall make every effort to have the wishes of your Government carried into effect. I have, &c, The Hon. the Premier, Wellington. W. B. Peeceval.

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Enclosure 1 in No. 31. The Agent-Geneeal to the Seceetaby, General Post Office, London. Sib,— 13, Victoria Street, London, S.W., 23rd August, 1892. I am in receipt of your letter of the 15th instant, in which you inform me that the Post-master-General has had under consideration my letter of the 4th ultimo, in which I asked Her Majesty's Government for a continuance of the present, and, if possible, for increased, support of the San Francisco service after November next when the present arrangement expires, and in which you inform me that the Lords Commissioners of the Treasury and the Postmaster-General regret their inability to consent to any further prolongation of the exceptional arrangement connected with the service in question, and" that after November next your department will not be prepared to pay at an exceptional rate for the conveyance of mails for New Zealand and Australia by the colonial packet service from San Francisco. I have received this communication with much regret, and am in communication with my Government on the subject of your decision, and will communicate further with you in a few days. It has already been pointed out in previous correspondence that the San Francisco mail-service is the only direct and reliable one to the colony, and under the exceptional circumstances my Government consider that the least the Imperial Government ought to do is to share with New Zealand equally in whatever the service may cost to maintain. With regard to the concluding paragraph of your letter, in order to enable me to place my Government in possession of the estimated results of the proposed arrangement for adjusting the accounts connected with the San Francisco service on the basis of Postal Union Convention, I should' be obliged if you would furnish me with a statement showing how the Postal Union rates compare with the support now contributed by the Imperial Government. I am, &c, W. B. Pebceval. The Secretary to the General Post Office, St. Martin's-le-Grand.

Enclosure 2 in No. 31.—(See Nos. 3, 4, and 5.)

Enclosure 3 in No. 31. The Seceetaby, General Post Office, London, to the Agent-Genebal. Sib, , General Post Office, London, 31st August, 1892. I beg leave to acknowledge the receipt of you letter of the 23rd instant, in reply to mine of the 15th, respecting the approaching discontinuance of the support accorded by Her Majesty's Government to the colonial mail-packet service between San Francisco and New Zealand. With regard to your request for a comparison between the exceptional rates at present paid for this service and the Postal Union rates, I may state that under the present arrangements, by which this department pays 11s. per pound on outward letters and post-cards and nothing on newspapers, the payment made by the United Kingdom for sea-transit in the Pacific is estimated at £4,750 a year. The proportion of the Union rates payable for the Pacific section of the service would be iOfr. per kilogramme of letters and post-cards, and 50c. per kilogramme of other articles, and this payment would amount to £3,050 a year. The estimated loss to the colony would therefore be a sum of £1,700 a year. I am, &c, H. BUXTON FoBMAN, W. B. Perceval, Esq., Agent-General for New Zealand. For the Secretary.

Enclosure 4 in No. 31. The Agent-Genebal to the Segbetaky, General Post Office, London. g IK) 13, Victoria Street, London, S.W., 3rd September, 1892. Adverting again to your letter of the 15th ultimo, in which you inform me that the Lords Commissioners of the Treasury and the Postmaster-General regret to find themselves unable to consent to the renewal of the present contribution of the Imperial Government towards the San Francisco mail-service of New Zealand, and my reply thereto of the 23rd ultimo, in which I informed you that I was in communication with my Government on the subject of your decision, I have now to inform you that my Government have instructed me by cable to ask that the decision thus arrived at by the Lords Commissioners of the Treasury and the Postmaster-General may be reconsidered. Before dealing with the grounds upon which my Government ask that the question may be reopened, I desire to acknowledge the receipt of your letter of the 31st ultimo, giving me the result of the estimated loss to the colony by the adjustment of the contribution made by the Imperial Government on the basis of the Postal Union rates, and to thank you for the information it contained.

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Owing to the successive changes that have been made since 1890 in the apportionment of the cost of the San Francisco service between the Imperial Government and the Colony of New Zealand, and also to the reduction of the postage rate from 6d. to 2|d.—a reduction which was brought about at the instance of the Imperial Government —this service is now carried on at a considerable loss to the colony. The isolated position of New Zealand renders it impossible at the present time to obtain more favourable terms from the contractors for the conveyance of the mails across the Pacific, and my Government urges that, as the maintenance of this service is a necessity for the efficiency of the postal service between the United Kingdom and New Zealand, the colony is justified in asking the Imperial Government to share the expense with the colony. My Government is not able to get the Homeward mails carried by this route across the Pacific at Postal Union rates, so that if the Imperial Government insist on having the outward mails carried at this reduced rate it can only be done at the expense of the colony. I would also venture to point out, in connection with this phase of the question, that while the Imperial Government and the colony have to submit to an exceptional rate of payment to the United States (all three being members of the Postal Union) as regards the conveyance of the mails between New York and San Francisco, on the other hand, the Imperial Government would appear now to desire to throw upon the colony the obligation to provide for the transit of the mails sent from the Mother-country, the colony receiving for such exceptional service payment only at the ordinary Postal Union rates. I cannot help thinking that, on reconsideration, Her Majesty's Government will not fail to realise that making such a distinction in the case of a colony which cannot take up the independent position that the United States is able to do is not only a considerable hardship to that colony, but also is one that the Mother-country is hardly justified in enforcing. In support of the contention that the San Francisco service is a necessity under existing circumstances for the efficiency of the postal service between the United Kingdom and New Zealand, I refer to the fact that, in consequence of the Imperial Government having refused to co-operate with the New Zealand Government in subsidising a connecting service between Australia and New Zealand, the Federal (Suez) service is an unreliable one. It is no uncommon thing for the outward mail to suffer detention of five days in Melbourne, and, in the event of a succeeding mail arriving some days ahead of time, for the two mails to be delivered in New Zealand by the same steamer. The time from London to Melbourne is thirty-five days. The mails are due in Melbourne on the Saturday, and the intercolonial boats are timed to leave on the Tuesday for the Bluff, which makes the time to New Zealand about forty-three days. By the San Francisco service the time to Auckland is between thirty-three and thirty-four days, and the mails are delivered in Dunedin on the third day after arrival at Auckland, and on the following day at Invercargill, or thirty-seven days to Dunedin, as against forty-four by the Federal service. It is true that the Federal mails are occasionally delivered in shorter time. This entirely depends on the steamer arriving in advance of time at Melbourne. The want of a fast intercolonial service undoubtedly minimises the value of the route via Suez, but this cannot be obviated at present; but my Government hope that when the time arrives for renewing the San Francisco service it may be possible to arrange for a fortnightly service to San Francisco, or, what would be much more desirable, to join in subsidising a fast line of steamers from Vancouver, thus insuring the connection between the colony and the United Kingdom across British territory. It is true that, according to the figures supplied by your department, the increased cost to the colony is not a large sum, being only about £1,700 per annum, but in order to provide for this increased cost a vote would have to be submitted to the New Zealand Parliament, and it is doubtful whether Parliament would sanction any additional expenditure over this service, and an alternative proposal would probably be made to revert to the Direct fortnightly service ma Cape Horn, involving a subsidy which the Imperial Government would be expected to share in providing. Proposals were made by the United States Government to the New Zealand Government some time back for an improved service with the colony (fortnightly), and my Government is anxious to maintain the connection with San Francisco in the hope of these proposals being carried into effect at no distant date, or, what is preferable, the establishment of a fortnightly Canadian Pacific service. The impending Chicago Exhibition, proposed to be held next year, affords an additional argument with my Government for desiring to maintain the connection with San Francisco, and the Premier of the colony, in his telegram, expresses himself as confident that an appeal to your department for co-operation in maintaining the most efficient postal connection with the colony will receive favourable consideration. Ido not consider it necessary to reiterate the arguments which have been expressed previously in the lengthy correspondence which has taken place between us in the past on this subject, but beg to point out that, whatever may have been the exceptional concessions which your department has generously accorded in the past, my Government is now only asking the Imperial Government to join with the colony in defraying the cost of what are admittedly imperfect arrangements, but nevertheless arrangements which under the circumstances are the best that can be made for the purpose of insuring the maintenance of a mail-service between this country and New Zealand which has proved to be of undoubtedly greater value than any other service existing either at present or in the past. I am, &c, W. B. Peeceval. The Secretary to the General Post Office, St. Martin's-le-Grand.

Enclosure 5 in No. 31. —(See No. 10.)

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Enclosure 6 in No. 31. The Agent-General to the Secretary, General Post Office, London. 13, Victoria Street, London, S.W T ., sth September, 1892. Sm, — Renewal San Francisco Mail-service. Since writing my letter of the 3rd instant, I have received a cable from my Government, in which it is stated that the Imperial Government now pay to the colony 12s. and not 11s. a pound as the contribution of the United Kingdom for the carriage of the outward mails across the Pacific. As in my letter of the 4th July I stated that last year the amount was reduced to lls., I take the earliest opportunity of making this correction. I am, &c, The Secretary, General Post Office, St. Martin's-le-Grand. W. B. Perceval. '

Enclosure 7 in No. 31. The Secretary, General Post Office, London, to the Agent-General. Sir, — General Post Office, London, 6th September, 1892. Your letters of the 3rd and sth instant were brought to this department yesterday together, and no time has been lost in bringing before the Postmaster-General, who is not at present in London, the further appeal of your Government against the decision of the Lords Commissioners of the Treasury not to make any special contribution after November next towards the support of the colonial packet service between New Zealand and San Francisco. Mr. Morley will doubtless communicate to the lords Commissioners the further appeal in question, but it may perhaps be desirable to recall to your recollection that their Lordships' decision on the subject was first communicated to your predecessor as long ago as the 17th of October, .1891. With special reference to your letter of the sth instant, I have to point out that, in the letter from this department just mentioned, it was announced that this country would continue to pay for the Pacific service outward at the rates paid for it to the contractors by the colony, " not exceeding 12s. per pound for letters," and that this arrangement should be limited to one year from the Ist of November, 1891. This department has since been given to understand that the rate paid to the contractors by the colony is 11s. per pound, and this is why that rate has been quoted in recent correspondence on the subject. The decision, of which your predecessor was informed in the letter of the 17 th of October, appears to have been duly announced to the New Zealand Government, as requested in that letter; and, on the 6th of November following, Mr. Kennaway requested, on behalf of the colonial Government, that the question might be reconsidered. That request was at once forwarded to the Treasury, as was also a further letter from Mr. Kennaway, dated the 17th of the same month; and, on the Bth of February, 1892, I had the honour of informing you of their Lordships' adherence to their previous decision. Your further appeal of the 4th of July was also sent to the Treasury without loss of time, but again with the same result, announced to you in my letter of the 15th ultimo, that their Lordships still adhered to their original decision. Acting upon the evident intention of the Treasury that the arrangements already announced should be adopted, the Imperial Post Office has, as intimated in the final paragraph of my letter of the 15th ultimo, communicated directly with the New Zealand Post Office with a view to the adoption of the new principle in future accounts; and, looking at the recent course of the discussion of this matter between the Imperial and colonial Governments, it is hardly to be anticipated that the Lords of the Treasury will now arrive at a different conclusion from that already formed. It has seemed advisable to recapitulate the more recent part of the correspondence in order to avoid any misunderstanding on the actual aspect of the question; and you will probably concur in the opinion that, if it is necessary for your Government to take any immediate steps for the renewal of its packet service to and from San Francisco, it will be safest to act upon the assumption that the Imperial Government does not wish to influence that of the colony in one way or the other, having already concluded that it is undesirable to support the service to any greater extent than is implied in using it, if its maintenance is continued, upon the terms prescribed by the Postal Union Convention. I have, &c, H. BuXTON FORMAN, W. B. Perceval, Esq. For the Secretary.

No. 32, The Agent-General to the Hon. the Premier. Westminster Chambers, 13, Victoria Street, London, S.W., Sir,— 29th September, 1892. Eeferring to my letter of the 9th instant, I beg to transmit copy of letter which I have this day received from the General Post Office, by which it will be seen that the Imperial Treasury declines to alter the decision which was conveyed to me by the General Post Office letter of the 15th instant, which was to the effect that the Imperial Government were not prepared to continue to contribute towards the cost of the mail-service between New Zealand and San Francisco except at ordinary Postal Union rates. I feel so strongly that in adhering to such a decision the Imperial Treasury and Post Office fail to recognise how inequitable it is to the colony, that I have asked for an interview with the Postmaster-General for the purpose of representing to him personally the views of the Government with respect to the matter, and then if that fails I propose, unless I receive instructions from you

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not to press the matter further, to place the whole correspondence before the Colonial Office, and request them to communicate with the Treasury and Post Office for the purpose of inducing those departments to again reconsider the question at issue with the view of their arriving at a juster decision than that which has now been conveyed to me. I am disinclined to attribute any motive that is not apparent as regards the action of the London Post Office authorities, but I cannot help thinking that, ignoring the great superiority and importance of the San Francisco mail-service, they would not regret to bring about its abandonment, and thus force all correspondence to be sent through what appears to be their favourite route—viz., that via Italy and Australia. I attach copy of cablegram which I sent to you this day. I have, &c, The Hon. the Premier, Wellington. W. B. Perceval.

Enclosure 1 in No. 32.—(See No. 11.)

Enclosure 2 in No. 32. The Secretary, General Post Office, London, to the Agent-General. Sik,— General Post Office, London, E.G., 28th September, 1892. With reference to your letter of the 3rd, and the reply from this office of the 6th instant, I am directed by the Postmaster-General to inform you that he has submitted to the Lords Commissioners of the Treasury the further appeal of your Government against the decision of that Board not to make any special contribution after November next towards the support of the colonial packet service between New Zealand and San Francisco, and has now received their reply. Their Lordships state that they abide by the decision of their predecessors, that the time has come when the New Zealand Government may fairly be expected to conform to the rules of the Postal Union of which the colony has become a member, and that they cannot revert to an arrangement which has been definitely abandoned as being unfair to this country. I am, &c, W. B. Perceval, Esq., Agent-General for New Zealand. H. Joyce.

Enclosure 3 in No. 32. The Agent-General to the Secretary, General Post Office, London. Sir,— 13, Victoria Street, London, S.W., 29th September, 1892. I beg to acknowledge the receipt of your letter of the 28th instant, conveying the reply of the Imperial Treasury to the appeal of my Government against the decision communicated to me by your letter of the 15th ultimo. I must express regret that I have failed in my endeavour to show how inequitable such a decision is to the colony which I represent. I feel so strongly on the matter that I shall be much obliged if you will arrange so that I can have an interview with the Postmaster-General and personally represent to him the views of my Government with respect to it. I am, &c, The Secretary, General Post Office, London, E.C. W. B. Pekceval.

No. 33. The Hon. the Premier to the Agent-Genebal. giE ) Premier's Office, Wellington, 3rd November, 1892. I have the honour to acknowledge the receipt of your letter of the 9th September last, enclosing copy of further correspondence, extending from the 23rd August to the 6th September, which passed between yourself and the Imperial Post Office, and also copy of our cablegrams between the same dates, on the subject of the renewal of the San Francisco mail-service. I earnestly hope that you may be able to prevail on the Imperial authorities to renew the existing arrangement for another year. Our appeal to New South Wales (to which I referred in my letter of the 6th ultimo) to increase its payment to the service to £5,000 a year, so as to make up to the contractors the loss they would suffer should the Imperial authorities insist on treating the service on strictly Postal Union lines, has resulted in the Government of that colony agreeing, subject to the approval of its Parliament, to give £4,000 for one year, an offer which has been accepted by the Hon. Mr. Ward; but, in consequence of the larger amount not having been granted, the contractors have refused to bind themselves to carry on the service for the full term of a year. There is little doubt, however, that the service will be continued for another twelve months; and a time-table, of which I enclose two copies, has been issued on this assumption. From the enclosures to your letter it is observed that the Imperial Post Office maintains that its rate of payment towards the cost of the service is 11s., and not 12s. per pound on the letters, and quotes from its communication of the 17th October, 1891, to Mr. Kennaway, in support of this. But, as showing what the understanding has been at this end, I have to refer to my cablegram of the 30th of the same month to your predecessor—despatched, of course, before

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the copy of that letter was received here. The cablegram will be found at page 13 of parliamentary paper F.-2, 1892, on ocean mail-services, presented last session, and it contains the instruction, " Accept twelve shillings Frisco one year." No exception has been taken to this either by your own or the London Post Office ; and it has, of course, been assumed that the rate of payment by the London Office would be continued at 12s. Indeed, the following, from your predecessor's cablegram of the 19th October, 1891 (No. 35, page 12, of the same parliamentary paper), may be quoted in confirmation of this: " Pacific Service: Imperial Government continue pay your contract rates outward letters, amount not to exceed twelve shillings." It is true that 11s. per pound is the rate named in the resolutions approved by the House of Representatives in the session of 1891 for a renewal of the service for three years; but the reduction from 12s. to 11s. was made advisedly as a set-off against the additional cost which would be borne by the colony through relieving the contractors from payment of half the United States territorial transit-rates on Homeward mails, imposed on them under the previous agreement. It did not follow that a corresponding reduction in the rate was to be made in respect of mails from Great Britain and non-contracting colonies ; and, as a matter of fact, the non-contracting colonies are now paying 12s. per pound on their letter-mails. And this rate has been claimed by New Zealand in its quarterly accounts with the London Post Office ; and the accounts for last December quarter (which included three London mails under the renewed arrangement) have been returned to the colony duly accepted. The resolutions of the House also provided, " that all payments or contributions from Great Britain and other countries shall be receivable by the contractors," who, of course, have been and are being paid at the rate of 12s. per pound on the letter-mails from Great Britain. It is to be hoped that, on the position being explained to the Imperial authorities, they will continue payment at this rate for the twelve months ended with the despatch of the mail of the Ist ultimo from London ; and I shall be obliged if you will make suitable representations to this end. It appears that the contractors will also suffer in the matter of the rates proposed to be paid by the Imperial Post Office for transit of its mails from San Francisco to Auckland. It had been understood by the Post Office here that the rates payable would be based on the distance from San Francisco to Auckland as compared to the whole sea-distance traversed on both Atlantic and Pacific, and that of the total rates for sea-transit—viz., 15fr. for letters and post-cards, and lfr. for other articles (see sub-paragraph 2 of paragraph 3 of Article IV. of the Postal Union Convention), lOfr. 12c. and 67c. respectively per kilogramme would be payable for Pacific transit; indeed, these are the rates set out at page 13 of the printed paper, " A Brief Account of the Formation of the Universal Postal Union," issued by the General Post Office in London. But in Mr. Buxton Forman's letter of the 13th August last to you, the rates to be paid for Pacific transit are fixed at lOfr. per kilogramme of letters and post-cards, and 50c. per kilogramme of other articles, which is also confirmed by his letter of the 3rd September, addressed to the Postmaster-General. It would now appear that the Atlantic transit has been treated as an exceptional service, under sub-paragraph 2, paragraph 4, of the same article of the Convention, and that sfr. for letters and post-cards, and 50c. for other articles per kilogramme, are the rates to be maintained; with the result that the rates for the Pacific conveyance are reduced by 12c. and 17c. respectively. The loss to the contractors under this arrangement is estimated at £2,539, in the place of £1,975 as estimated here at first on the basis of lOfr. 12c. and 67c. respectively per kilogramme. In a letter to the London Post Office, the Postmaster-General has taken exception to the payment of the lesser rates for the Pacific transit; and I shall be obliged if you will also take up the matter should you find it necessary. It should be explained that the colony will not make up to the contractors any part of the loss they may sustain should the Imperial Post Office determine to pay Postal Union rates only. New South Wales' increased contribution of £4,000, however, will recoup the contractors to the extent of about £2,000. Since the foregoing was written I have received your cablegram of yesterday, advising that the Imperial Post Office had definitely refused to continue the present apportionment of the cost of the service—a decision as unexpected as it is disappointing. I had hoped that your appeals would prevail with the Imperial authorities to renew the present apportionment for at least another year. I am, nevertheless, sensible that you have done your best to have effect given to the wishes of the Government; and it is to be regretted that your representations on behalf of the colony have not received that consideration which they were in fairness entitled to. I have, &c, W. B. Perceval, Esq., A. J. Cadman, Agent-General for New Zealand, London. For the Premier.

No. 34. The Agent-Geneeal to the Hon. the PbemiEe. (Telegram.) London, 2nd November, 1892. San Francisco : Imperial Post Office finally refuses to alter previous decision.

No. 35. The Hon. the Postmasteb-Genebal to the Seceetaby, General Post Office, London. Post Office and Telegraph Department, General Post Office, Wellington, Sib,— 3rd November, 1892. I have the honour to acknowledge the receipt of your letter of the 3rd September last, formally notifying the decision of Her Majesty's Government to discontinue the support hitherto

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accorded the San Francisco mail-service by paying at an exceptional rate towards its maintenance, the intention being to adhere strictly to the Postal Union regulations in regard to the apportionment of the cost of the service. I note your request for the preparation of the accounts on the basis of the Postal Union Convention, and also the information that the proportion of the Union rates payable for the Pacific transit from San Francisco to Auckland will be lOfr. per kilogramme of letters, and 50c. per kilogramme of other articles. In reference to these rates, I have to point out that they still further, and unexpectedly, increase the estimated loss on the service, this office not having been advised that the transit across the Atlantic was to be regarded as one of the exceptional services contemplated by subsection (2), section 4, Article IV., of the Postal Union Convention, to be paid for at sfr. per kilogramme for letters and post-cards, and 50c. per kilogramme for other articles, thereby leaving only lOfr. and 50c. respectively to be credited to the colony for the Pacific carriage. As a matter of fact, your office, in the printed paper entitled " A Brief Account of the Formation of the Universal Postal Union," page 13, gave the rates for the Pacific transit as lOfr. 12c. for letters, and 67c. for other articles, per kilogramme, and these figures were used by this office when calculating what would be payable by your office under the proposed new regime. Should it be eventually decided that Union rates are to govern your payments it is hoped that the higher rates will be allowed by your office. You are, of course, aware that the Agent-General for New Zealand is endeavouring to secure a continuance of the present arrangement under which your office is paying at the rate of 12s. per pound on the letter portion of your outward mails. I have, &c, W. Gbay, The Secretary, General Post Office, London. For the Postmaster-General.

No. 36. The Hon. the Pbemieb to the Agent-GeUebal. Sib, — Premier's Office, Wellington, 24th November, 1892. I have the honour to acknowledge the receipt of your letter of the 29th September last, enclosing copy of the letter of the previous day from the Imperial Post Office, conveying the decision of the Treasury not to alter the determination to contribute to the cost of the San Francisco service on the Postal Union basis only. I regret this ; but no doubt it is useless now to move further in the matter. As the service is mainly supported now by New Zealand, the decision is certainly not fair. I have, &c, W. B. Perceval, Esq., J. G. Waed, Agent-General for New Zealand, London. For the Premier.

No. 37. The Agent-Genebal to the Hon. the Pbemieb. Ser,— Westminster Chambers, 13, Victoria Street, London, S.W., 27th October, 1892. I have the honour to acknowledge the receipt of your letter of the 31st August, relating to the ocean mail-services, and beg leave to thank you for the information contained therein, which has been of much service to me. With regard to the reference you make respecting the amount of the United Kingdom's contribution being 12s. per pound instead of 11s. as given in my letter to the General Post Office of the 4th July last, I may explain that I assumed that the lower amount was being paid, inasmuch as in the Imperial Post Office letter of the 17th October, 1891, it was stated that the United Kingdom would continue to pay at the rates paid to the contractors by the colony, not exceeding 12s. per pound, and the mail-service resolutions passed by the House of Eepresentatives provided that the rate should be 11s. But, as you truly remark, the error does not materially affect the point at issue. As to the action I have taken in respect to the matter since my letter to you of the 29th September, I beg to state that in the first place I sought and obtained an interview with the Post-master-General. This interview took place on the 17th instant, and herewith I transmit a copy of memorandum made by me at the time recording the substance of what took place on that occasion. Previous to my seeing Mr. Arnold Morley, I had an interview with Mr. Sydney Buxton, the Under-Secretary of State for the Colonies, and expressed to him the views the Government held with respect to the action of the Imperial Post Office, and he promised to communicate with the Postmaster-General on the subject. You will observe that in my interview with the Postmaster-General he expressed a desire for information respecting the prospect of a mail-service via Vancouver being established, and I therefore placed myself in communication with Sir Charles Tupper (the High Commissioner of the Dominion of Canada), who informed me that in his opinion there was every probability of a Canadian Pacific service being established at no distant date. I accordingly communicated this information to the Postmaster-General, in a letter which I addressed to the General Post Office on the 18th, copy of which I herewith enclose, and I also took occasion to write a letter (copy herewith) to Sir Charles Tupper, pointing out to him that it was important to keep the San Francisco service open until the arrangements for the Canadian Pacific service were matured. I also asked the Colonial Office for an interview with Lord Eipon, but, as that nobleman was not in town, I addressed a note to Mr. Bramston, one of the Assistant Under-Secretaries, setting forth briefly the points at issue, and suggesting that Lord Eipon might use his influence in favour of the colony.

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I enclose copy of the correspondence, which, you will observe, is of an unofficial nature, that mode of corresponding being, I considered, under the circumstances, more likely to be effective than if I had addressed the Colonial Office officially. I think that everything has now been done to induce the Imperial authorities to take a more equitable view of the matter than they have hitherto adopted, and that we must now await their final decision. I have, &c, The Hon. the Premier, Wellington. W. B. Perceval. P.S.—Since writing the above, I have had an interview with Lord Eipon, Mr Sydney Buxton being also present, both of whom expressed themselves as taking a favourable view of the demands of the colony, and I have every reason to think that they will use their influence accordingly with the General Post Office and Treasury.

Enclosure 1 in No. 37.—(See Nos. 24 and 25.)

Enclosure 2 in No. 37. The Secretary, General Post Office, London, to the Agent-General. Sir,— General Post Office, London, E.C., 10th October, 1892. With reference to your letter of the 29th of last month, in which you asked for an interview with the Postmaster-General, for the purpose of representing the views of your Government on the question of the mail-service to New Zealand via San Francisco, I am directed by Mr. Arnold Morley to state that he will be pleased to see you next Monday, 17th October, at 1 p.m., if that hour is convenient to you. I am, &c, W. B. Perceval, Esq., Agent-General for New Zealand. H. Joyce.

Enclosure 3 in No. 37. Memorandum by the Agent-Genebal. San Francisco Service. Interview with Mr. Arnold Morley, Postmaster-General, and Sir Arthur Blackwood, Secretary to General Post Office, at 1 p.m. Urged Postmaster-General to press upon the Treasury the continuance of present arrangements regulating the San Francisco service on grounds — 1. That in the interest of the colony and also in the interest of Great Britain service should be maintained, owing to its superiority over other services. 2. That the Frisco service is the only reliable service to the colony, being regular and much shorter than the other services. 3. That the Suez service is irregular, owing to Great Britain refusing to join in subsidising a federal connection between New Zealand and Australia. 4. That the colony recognised the superiority of the Frisco service by making a sacrifice to maintain it, the annual loss being several thousand pounds. 5. That in determining whether the Frisco service should be maintained the colony should be consulted, and if the colony is willing to make a sacrifice to maintain it, that should be conclusive evidence of the opinion of the colony that that service is superior. 6. That in view of the Vancouver service being established, the Frisco connection should be maintained. Mr. Morley promised to communicate the views expressed to the Treasury, and would be glad of any reliable information as to the prospects of a Vancouver service being established. 17th October, 1892. W. B. P.

Enclosure 4 in No. 37. Mr. Perceval to Mr. Bkamston. Dear Mb. Bkamston,— 13, Victoria Street, London, S.W., 18th October, 1892. I fancy Mr. Meacle is away, so I write to you. A controversy is going on between the General Post Office and myself with regard to the San Francisco mail-service. It has always been the practice to deal direct with the General Post Office, instead of through the Colonial Office, but the matter is one which I think ought to be brought under the notice of the Secretary of State for the Colonies, as, if the decision of the Post Office is insisted on, it will be unfair to the colony, and cause a feeling of resentment at the action of the Imperial Government. I shall be glad to know whether the Marquis of Eipon will grant me an interview on the subject. Yours, &c, John Bramston, Esq., C.8., Colonial Office. W. B. Perceval. 3—F. 6.

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Enclosure 5 in No. 37. The Agent-General to the Seoeetaey, General Post Office, London. Sic,— 13, Victoria Street, London, S.W., 18th October, 1892. Eeferring to my interview of yesterday with Mr. Morley, the Postmaster-General, when I endeavoured to convey to him the regret entertained by the Government of the Colony of New Zealand at the decision of the Lords of the Treasury to refuse to pay the whole cost of conveying the English mails across the Pacific from San Francisco to New Zealand, thereby necessitating the payment by the colony of a sum estimated at £1,700 for the carriage of the English mails, and when, among other reasons put forward by me for the renewal of the service on present lines, I mentioned the desire of my Government that the Frisco service should be continued in view of the projected fortnightly Canadian Pacific service being established at no distant date to take its place, I have the honour, in accordance with my promise, to state, for the information of the PostmasterGeneral, that I was yesterday afternoon informed by Sir Charles Tupper, High Commissioner for Canada, that in his opinion there is every probability of the Canadian Pacific service being established at no distant date. Sir Charles informs me that during next week he is to have a consultation with the Finance Minister of Canada on this subject, when he hopes proposals will be discussed which will result in the service being established in a short time. With regard to the point raised at my interview as to the efficiency and superiority of the Frisco service, I take this opportunity of submitting that in dealing with this point the opinion_of the Government of the colony is worthy of as much consideration as the opinion of the Imperial authorities. The opinion of my Government is evidenced by the maintenance of the service notwithstanding a consequent loss, which amounted last year to £3,454, and which for the current year will exceed that sum. I have no hesitation in stating that should the Treasury adhere to its previous decision the feeling in the colony can only be, one of resentment at the injustice of the Imperial Government forcing upon the colony more than a fair share of maintaining the only regular and efficient mail-service. The alternative of compelling the colony to abandon it and fall back on the Suez service would be to compel the colony to adopt a service which is extremely defective,'and only tolerated until a better one can be arranged. I am, &c, The Secretary to the General Post Office. W. B. Peeceval.

Enclosure 6 in No. 37. Mr. Beamston to Mr. Peeceval. Dbae Mb. Peeceval — Colonial Office, S.W., 18th October, 1892. Lord Eipon will not be in town for another week, and I would suggest to you to write us officially a short statement showing the exact point in dispute. If received in time this could be sent to Lord Eipon in Yorkshire, and he would then consider whether it is necessary to trouble you to come over. Am I right in supposing that the General Post Office are willing to pay the same rate via Frisco as they do via Suez, but that they think the colony should bear the extra cost of la_ndtransit through the States, as, from their point of view, this route, though somewhat quicker, is a luxury and not a necessity. What does the difference amount to in money? Yours, &c, W. B. Perceval, Esq., 13, Victoria Street, S.W. John Beamston.

Enclosure 7 in No. 37. Mr. Pebceval to Mr. Beamston. 13, Victoria Street, London, S.W., 19th October, 1892. Dear Me. Bbamston,— Frisco Service. ...,'«-, -» ;.« I do not think it will further my object to write to the Colonial Office officially, as an official representation from you would no doubt bring the response from the General Post Office that they were in direct communication with me on the matter. My object m desiring to place Lord Bipon in possession of the facts was in order that, if he thought fit, he might see Mr. Morley and urge him to induce the Treasury to yield. I deem it my duty to inform Lord Eipon of any facts or circumstances which, in my opinion, tend to give rise to a feeling of resentment on the part of the colony I represent against the treatment of the Imperial Government. Put shortly, the grievance is this : The Frisco mail-service is very superior to the other service (the Suez route), there being a difference in time of from seven to ten days. I may state, in passing, that the General Post Office failed to join with the colony in the proposal to subsidise a connecting mail-service between Australia and New Zealand, therefore'the mails have to go by the ordinary steamers, which are not timed to connect. The result is that no dependence can be placed on the regular delivery of the Suez mail, and as a mail-service it is most unsatisfactory. The New Zealand Government are, therefore, most anxious to have the Frisco service continued, and merely ask the General Post Office to share the expense equally with the colony. The present service is only a monthly service; but there is every probability of a fortnightly service via Vancouver being established at an early date, and this reason weighs heavily with the New Zealand Government in their desire to keep open present connection across the Pacific until the Vancouver service is ready to take the place of the Frisco service. A mail service via Canada, with a Vancouver Pacific connection, is regarded by the colony as of the greatest importance, not only from a colonial but from an Imperial point of view ; and the abandonment of the Frisco service, and the consequent new mail arrangements which would ensue,

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would probably raise a serious difficulty in the colony joining in subsidising a Canadian Pacific service. The General Post Office refuse to pay the whole cost of the carriage of the English mails to New Zealand via Frisco, although New Zealand is willing to pay the whole cost of the New Zealand mail Home. This is considered most unfair, as it forces the colony to abandon the service or subsidise the carriage of England's mail to New Zealand, and it, moreover, jeopardises the establishment of the Canadian Pacific mail-service. The General Post Office entirely fails to appreciate the efficiency and superiority of the Frisco service, although the colony is so satisfied of this that the New Zealand Government has continued the Frisco service at an annual loss: the loss last year was about £3,500. It is true that the Post Office is willing to defray the cost of the carriage of England's mail to New Zealand, less a sum of about £2,000; but although this amount is not large it is none the less, in the opinion of the New Zealand Government, a very unfair imposition. It is difficult to understand the attitude assumed by the Post Office, in order to save so small a sum, of departing from what is surely an equitable arrangement, viz., the maintenance of a mailservice on the basis of this country and the colony dividing the expense. The difference of seven to ten days in time is very important to commercial men, and the interest for that time on drafts in transit is alone a matter of considerable moment. It may be that in my desire to gain my point with the Post Office I have somewhat exaggerated the effect which their decision will produce in the colony, but my present opinion is that the colony will consider that the Imperial Government has been most unjust, a result which I am most anxious to avoid; and my opinion in this respect is fortified by the fact that my Government seem to assume that the arguments in support of their request are so overwhelmingly strong that they take it for granted the General Post Office must yield. I had an interview with Mr. Morley two days ago, and he promised to communicate my views to the Treasury; but I fear he does not realise the importance attaching to the subject. I enclose a memorandum I made some time back for my own guidance, detailing the arguments, which may help you to understand the question. Yours, &c, John Bramston, Esq., C.8., &c, Colonial Office, W. B. Peeceval.

Enclosure 8 in No. 37. Mr. Peeoeval to Sir Chables Tuppeb. Deae Sic Chaeles Tuppeb,— 13, Victoria Street, London, S.W., 20th October, 1892. Eeferring to my conversation of a few days ago regarding the refusal of the General Post Office to join with the New Zealand Government in maintaining the San Francisco service, I have, in asking the Postmaster-General to reconsider his decision, advanced as an argument in favour of continuing the service the fact that the discontinuance of the service and the new arrangements which would necessarily have to be made for the establishment of an alternative service (which arrangements might have to be for a term of years) might seriously militate against New Zealand joining in providing the necessary subsidy for the support of the Canadian Pacific projected service, of the establishment of which I have assured the Postmaster-General there is a reasonable probability at an early date. My Government regard the proposed Canadian Pacific service as of the greatest importance to the colony, and is anxious to keep the connection via Frisco open until the arrangements for the Canadian Pacific service are matured. I think it well to inform you of the argument I have used, so that if you think the circumstances warrant it you may exercise your influence in urging the continuation of the Frisco service pending the establishment of the Canadian Pacific service. Yours, &c, Sir Charles Tupper, Bart., G.C.M.G., W. B. Peeceval. High Commissioner for Canada, 17, Victoria Street, S.W.

No. 38. The Agent-Genebal to the Hon. the Peemiee. Westminster Chambers, 13, Victoria Street, London, S.W., Sic,— 4th November, 1892. Eeferring to my letter of the 27th ultimo, I beg to transmit copy of letter which I have received from the General Post Office, by which it will be seen that the Postmaster-General regards the decision of the Imperial Treasury, already communicated, as final. There are one or two points in Sir S. A. Blackwood's letter which I consider should not be left unanswered, and I shall shortly, therefore, send a reply to it, copy of which I will transmit to you by next mail. I may add to the information I gave in my letter to you of the 27th ultimo that I subsequently sent in to the Colonial Office copies of the more important letters bearing on the question at issue, and, in acknowledging their receipt, Mr. Sydney Buxton informed me that the Colonial Office had written fully to the Treasury on the subject, and that he himself had seen Sir E. Welby, Permanent Secretary to the Treasury, about it, and that he hoped to persuade them to adopt a favourable view with respect to it. I have, &c, The Hon. the Premier, Wellington. W. B. Pebcevab.

Enclosure 1 in No. 38. The Seceetaby, General Post Office, London, to the Agent-General. Sib, — General Post Office, Ist November, 1892. I have laid before the Postmaster-General your letter of the 18th October, on the subject of the decision of the Lords of the Treasury not to continue the support formerly given to the colonial packet service between New Zealand and San Francisco.

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Mr. Morley has learnt with interest that a scheme for a fortnightly service between Vancouver and Australasia is under discussion, but he does not regard this circumstance as one which would be likely to induce the Lords Commissioners of the Treasury to review the decision referred to above. Although, therefore, he greatly regrets the feeling which would seem to exist in the colony on this subject, he cannot but regard the decision as final, as, indeed, the Colonial Government appears to have done. Mr. Morley does not, of course, for a moment contest the competency of the Colonial Government to form a judgment as to the desirableness of maintaining the monthly service vid San Francisco, but it seems to him that your letter of the 18th October scarcely attaches sufficient weight to the fact that the maintenance cf the service at a loss to the colonial exchequer is evidence rather of the consequence of the service for the general purposes of the colony than of its importance to the public in this country. It must be borne in mind, too, that it is the rule, and not the exception, for packet services to be carried on at a loss, and that the decision of the Treasury not to continue paying at an exceptional rate for the conveyance of the British mails by the colonial service in question arose from the conviction that, so far as Imperial interests are concerned, the service is not an absolute necessity, but one which the colonial Government might reasonably be left to provide or not according to its own views of colonial requirements. There is one more point on which it is highly desirable that no misapprehension should exist in the colony. In some of the communications which have been sent to the Press, and also, as itseems to Mr. Morley, in your letter of the 18th of October, undue stress is laid upon the fact that, under the Treasury decision, the Colonial Government might possibly pay the packet company for the conveyance of British mails at a higher rate than this department would pay the New Zealand Post Office. Whether such will be the case of course depends upon the nature of the arrangement made by the- Colonial Government with the packet company, but should it be the case, no hardship is necessarily involved, seeing that, under the Union regime, the rates payable by one Post Office to another for sea-transit seldom approach the cost of the service to the country providing it, ascertainable by a ratable apportionment of the subsidy over the whole of the correspondence conveyed. At the same time, it is the fact that packet services paid for according to the weight of the mails carried are, as a rule, much cheaper than those for which a fixed subsidy is paid. If, therefore, the colony of New Zealand felt bound to maintain a packet service at the expense of a subsidy higher than the present total payments, and this country, not agreeing in the need for such a service, yet employed it at Union rates whenever it yielded an advantage as to speed, the loss to the colony on British correspondence would be actually greater than under the arrangement now authorised, but would not be apparent unless the subsidy were ratably apportioned. You are doubtless aware that the view now being acted upon as to the proper basis of accounting for the San Francisco service has long been held here, and that the Colonial Government has expressed its sense of the liberality which Her Majesty's Government has shown in postponing from time to time the realization of that view. Mr. Morley cannot but think that on full consideration your Government will admit the justice of the decision at length finally adopted. I am, &c, W. B. Perceval, Esq., Agent-General for New Zealand. S. A. Blackwood.

Enclosure 2 in No. 38.—(See No. 34.)

No. 39. The Agent-General to the Hon. the Peemiek. Westminster Chambers, 13, Victoria Street, London, S.W., Sib,— 10th November, 1892. I beg to transmit herewith copy of letter which I have addressed to the General Post Office in reply to that, copy of which I transmitted to you with my letter of the 4th instant. I may add that I have sent to the Colonial Office, with covering letter (copy herewith), copies of the above-mentioned correspondence. I have, &c, The Hon. the Premier, Wellington. W. B. Pebceval.

Enclosure 1 in ]Nlo. 39. The Agent-Genebal to the Seceetaey, General Post Office, London. Sir,— 13, Victoria Street, London, S.W., 7th November, 1892. I have the honour to acknowledge the receipt of your letter of the Ist instant, on the subject of the decision of the Lords of the Treasury not to continue the support formerly given to the service by which Her Majesty's mails are conveyed from San Francisco to New Zealand. I gather from the contents of your letter that, without asking their Lordships to review the decision referred to, the Postmaster-General has decided to regard it as a final one, and that therefore the Imperial Post Office will only undertake to incur a portion of the cost of such service, thus placing on the colony the burden of providing a portion of the cost for the conveyance of the mails sent from the United Kingdom by that route, which must be the major portion of the total mailmatter sent to the colony.

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I venture to ask you to express to the Postmaster-General the regret I feel on receiving your communication, more especially as at the interview which he did me the honour to accord to me I certainly understood that Her Majesty's Treasury would be again communicated with, and an endeavour made to bring about a more favourable decision. There are one or two points in your letter from which it would appear that some misapprehension exists on the part of the Postmaster-General, and to these I feel bound to briefly advert. In the first place, I desire to refer to your remark that my Government appears to have regarded the decision of Her Majesty's Treasury as final. I am not aware of the source from which this information has reached the Postmaster-General, and, in the face of the direct communications which I, as the representative of the New Zealand Government in this country, have received, I feel confident in saying that it is an entirely unreliable source. For the information of the Postmaster-General, I beg to state that, on informing my Government by cablegram of the decision of Her Majesty's Treasury, I received instructions to appeal to the Postmaster-General to renew the existing terms ; and in a letter confirming these instructions which I received by the last incoming mail, via San Francisco, my Government express their great disappointment at the decision, and their strong opinion that the intention to enforce Postal Union principles so long as the high territorial rates for the United States transit are retained was both illogical and illiberal, and that a more liberal treatment by the Imperial Government of the service, by either substantial increase of the payment in aid or relieving the colony of the burden of the transit charges by an appreciable reduction in the rates or otherwise, would, under the circumstances, be scarcely more than justice. I feel sure that the Postmaster-General will, with the above information before him, be convinced that such a statement as that to which I am referring is unfounded, and that he will relieve me from the implication that, in appealing to him for reconsideration of the matter, I was acting outside the wishes and authority of my Government. Eeferring.to the last paragraph of your letter, in which you state that doubtless I am aware that the views which have led to the decision against which I, on behalf of my Government, have appealed, have long been held by the Imperial authorities, I must confess that I was entirely unaware of the fact, and, moreover, I feel assured that it has never occurred to my Government that the Imperial authorities would go so far as to decline to meet at least the cost of the service in question, so far as the conveyance of the mails sent from the United Kingdom was involved. My Government, it is true, have appreciated the concessions made with regard to this service by the Imperial Government in previous years; but this appreciation extended only to the fact, as shown in my letter to you of the 4th July last, that the colony was at one time relieved of the payment not only of the charges for the Atlantic service, but also of those for the land-transit across America. But I feel sure that no expression of appreciation can ever have been made on account of Her Majesty's Government postponing the realization of the views which have now been adopted, and against which I have unsuccessfully ventured to appeal. In conclusion, I would beg leave to refer to the reason which you now give for the Treasury's decision—namely, that it arose from the conviction that, as far as Imperial interests are concerned, the service is not an absolute necessity, but is one which the Colonial Government might reasonably be left to provide. This view of the subject has not been prominently stated before, and my Government have therefore had no opportunity of referring to it to the extent which its importance deserves. It is not for me to lay down what are the Imperial interests which would render a mail-service worthy of adequate support; but, as regards the mutual interests of the two countries—social, commercial, and otherwise—l feel at a loss to understand how it is that a service which conveys the mails to their destination eight and ten days sooner than any other service can be considered otherwise than as a necessity. Surely such a mail-service between the Mother-country and one of her colonies, the commercial relations of which are represented by annual exports and imports amounting to £11,500,000, is a fit subject for such a measure of support as my Government has instructed me to request at the hands of the Imperial Government. I am, &c, W. B. Perceval. The Secretary to the General Post Office, St. Martin's-le-Grand.

Enclosure 2 in No. 39. The Agent-General to the Under- Secretary of State for the Colonies. 13, Victoria Street, London, S.W., Bth November, 1892. S IE) San Francisco Mail-service. Referring to the interview I had with the Secretary of State for the Colonies and MrSydney Buxton on the subject of the refusal of the General Post Office to renew its contributions for another year towards the maintenance of this service, when I explained the wishes of my Government on the subject, and was assured that the views I had expressed should be placed before the Lords Commissioners of the Treasury, I have the honour to forward copies of a letter I have received from the Secretary of the General Post Office and my reply thereto. It will be seen that the Postmaster-General has not thought it necessary to ask the Treasury to review their decision. I hope that, notwithstanding the action of the General Post Office, the Treasury will be pressed to give the matter their reconsideration. I have, &c, The Under-Secretary of State for the Colonies. W. B. Perceval.

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No. 40. The Agent-General to the Hon. the Premier. Westminster Chambers, 13, Victoria Street, London, S.W., Sir,— 24th November, 1892. I beg to transmit copy of letter which I have received from the General Post Office in reply to my letter, copy of which I enclosed with my letter of the 10th instant, on the subject of the San Francisco mail-service. I may mention that I understand that the Colonial Office are still in communication with the Treasury respecting the matter, and that I shall shortly be made acquainted with the result. I have, &c, The Hon. the Premier, Wellington. W. B. Perceval.

Enclosure in No. 40. The Secretary, General Post Office, London, to the Agent-Geneeal. Sir,— General Post Office, 14th November, 1892. The Postmaster-General has had before him your further letter of the 7th instant, on the subject of the New Zealand and San Francisco mail-service. Mr. Morley has certainly regarded the interview to which you refer not so much as an appeal against a final decision as an expression of regret and deprecation at the failure of an appeal which had already been submitted to the Treasury, with the result that their Lordships finally adhered to the decision of their predecessors; and the fresh considerations put forward were, as already stated, not such as to lead to the supposition that a further appeal would prove successful, especially in view of the ample opportunities which the Treasury had had of coming to a conclusion on the subject. The impression that the New Zealand Government has taken the decision in question as final was derived primarily from the opening of your letter of the 18th October, which, however, was found to correspond with telegrams from New Zealand published in several newspapers, to the effect that the final refusal of the Imperial Government to co-operate with the New Zealand Government in defraying the cost of the carriage of the mails across the Pacific has given rise to dissatisfaction. Mr. Morley would greatly regret the importation of a controversial character into the correspondence between yourself and this department, and he thinks it unnecessary to enter further into detail as to the history of this question, and the more so as he is perfectly willing to communicate your recent letters to the Lords Commissioners of the Treasury now that he knows such to be your wish. At the same time I am to remind you that as long ago as the 6th September I pointed out to you that it would be safest for your Government to act upon the assumption that the Imperial Government would support the San Francisco service only so far as is implied in using it, if its maintenance were continued, upon the terms prescribed by the Postal Union Convention. The Lords of the Treasury having, as you are aware, since confirmed that decision, the question cannot, of course, be regarded as open at the present moment, even if their Lordships should be pleased to reopen it on representations which you are now understood to have made to the Secretary of State for the Colonies. I am, &c, W. B. Perceval, Esq., Agent-General for New Zealand. S. A. Blackwood.

No. 41. The Agent-General to the Hon. the Premier. Westminster Chambers, 13, Victoria Street, London, S.W., Sir,— 20th January, 1893. Eeferring to your letter of the 3rd November last, I beg leave to transmit herewith copy of letter which I addressed to the General Post Office on the subject of the contribution from the Imperial Government for the past twelve months, and of that which it is now proposed to make. I have, &c, The Hon. the Premier, Wellington. W. B. Perceval.

Enclosure in No. 41. The Agent-Geneeal to the Secretary, General Post Office, London. 13, Victoria Street, 11th January, 1893. Sir, — San Francisco Mail-service. Eeferring to your letter of the 6th September last, in which you state that your department has been given to understand that the rate paid to the contractors by the colony is 11s. per pound, 1 beg leave to inform you that, by letter received by the last incoming mail from the New Zealand Government, it is stated that the contractors have been, and are being, paid at the rate of 12s. per pound on the letter-mails from this country. Again, in reference to your letter of the 31st August last, I desire to state that it had been understood by the Post Office authorities in New Zealand that the rates payable would be based on the distance from San Francisco to Auckland as compared to the whole sea-distance traversed on both Atlantic and Pacific, and that of the total rates for sea-transit —viz., 15fr. for letters and postcards, and lfr. for other articles (see sub-paragraph 2 of paragraph 3 of Article IV. of the Postal

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Union Convention)—lOfr. 12c. and 67c. respectively, per kilogramme, would be payable for Pacific transit; indeed, these are the rates set out at page 13 of the printed paper, " A Brief Account of the Formation of the Universal Postal Union," issued by your department. But in your above-mentioned letter of the 31st August last the rates to be paid for Pacific transit are fixed at lOfr. per kilogramme of letters and post-cards, and 50c. per kilogramme of other articles, which is also confirmed by your letter of the 3rd September, addressed to the Postmaster-General in New Zealand. _ It would therefore appear that the Atlantic transit has been treated as an exceptional service under sub-paragraph 2, paragraph 4, of the same article of the Convention, and that sfr. for letters and postcards and 50c. for other articles, per kilogramme are the rates which it is proposed to maintain, with the result that the rates for the Pacific conveyance are reduced by 15c. and 17c. respectively. The loss incurred under such a computation is estimated at £2,539, in the place of £1,975, as estimated at first on the basis of lOfr. 12c. and 67c. respectively per kilogramme. I understand that in a letter to your department the Postmaster-General in New Zealand has taken exception to the payment of the lesser rates for the Pacific transit, and I shall, therefore, be much obliged if you will favour me with your views on the point thus raised. I think it right to add that my Government, in acknowledging the receipt of my cablegram announcing the continued refusal of your department to continue the apportionment of the preceding twelve months, remark that it is a decision as unexpected as it is disappointing. My Government further say that it is to be regretted that my representations on behalf of the colony have not received that consideration which, in the opinion of my Government, they were in fairness entitled to. I am , &c -> W. B. Peeceval. The Secretary to the General Post Office, St. Martin's-le-Grand.

No. 42. The Hon. the Postmasteb-Geneeal to the Seceetaey, General Post Office, London. Post Office and Telegraph Department, General Post Office, Wellington, Sic,— 22nd March, 1893. In forwarding by the present mail the accounts relating to the correspondence exchanged between the United Kingdom and this colony vid San Francisco, I have the honour to inform you that this department has continued to claim at the rate of 12s. per pound of letters conveyed under the old arrangement, it being assumed, after the statement and explanation of the case by the Agent-General for New Zealand, that this rate would be allowed. For the two mails under the new regime coming within the quarter, the minimum rates of lOfr. per kilogramme of letters and post-cards, and 50c. per kilogramme of other articles, have been claimed in accordance with the decision conveyed in your letter of the 3rd September last. It is, however, hoped that your department will see fit to pay the higher rates of lOfr. 12c. per kilogramme and 67c. per kilogramme respectively, as claimed by the Agent-General on behalf of this colony in his letter to you of the 11th January last, and in my letter of the 3rd November last. I have, &c, W. Geay, The Secretary, General Post Office, London. For the Postmaster-General.

No. 43. The Hon. the Peemieb to the Agent-Geneeal. Premier's Office, Wellington, 19th April, 1893. g IE) San Francisco Mail-service. Since I wrote you on the 3rd November last, I have received your letters of the 27th October, the 4th, 10th and 24th November, and the 20th January last. The decided manner in which your appeals were met by the Imperial authorities gave little hope of your being able to obtain a reversal of policy, and apparently there is now no prospect of this. The correspondence, however, has been perused with much interest, and it is indeed difficult, in the light of what took place, to reconcile the refusal of the Imperial Government to accede to your request, or to understand why inquiries should have been made as to the possibilities of a Vancouver service. You will have learned from my letter of the 3rd November that any loss resulting from the change of policy of the Imperial Government would not fall on the colony; but, having argued on the assumption that it would, the case . was made the stronger for the colony. The decision which has been arrived at by the Colonial Office is regarded as illiberal, if not inequitable, especially in the face of the high American transit rates, and the strong desire of the Imperial Post Office to favour the Eastern service, which it is well known is unsuited to our exceptional requirements, while it declines to provide, or assist in providing, a connecting intercolonial service, so as to make the route vid Italy regular and reliable to New Zealand. It will no doubt be of interest to you to learn that at the Postal Conference held at Brisbane last month the Postmaster-General succeeded in carrying, unanimously, motions affirming—(l) That negotiations for a Canadian Pacific service should be opened up ; and (2) that a communication should be addressed to the Postmaster-General, Washington, pointing out the inadequacy of the subsidy paid by the United States towards the support of the San Francisco service, and the excessively high transit rates between San Francisco and New York, which the railway companies should be urged to materially reduce.

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The Conference proceedings had scarcely terminated before it was announced that Messrs. Huddart, Parker and Co., Australian shipowners, had obtained a promise of a subsidy from Canada of £25,000 a year towards the cost of a monthly steam-service between Australia and Vancouver. The company, it would appear, had been negotiating for some time with the Canadian Government, but this was not known to the Hon. Mr. W 7 ard when introducing his resolutions. Indeed, so far as can be ascertained, New Zealand is not to be included in the service. Messrs. Huddart, Parker and Co. have written the Government of New South Wales asking that the Australian Colonies subscribe £20,000 a year, and that if this be agreed to the firm would inaugurate a four-weekly fourteen-knot service without delay, delivering mails between London and Sydney in about twenty-six days. The New South Wales Government is favourable to the proposal, but the other colonies, with the exception of Queensland, it is stated, will not contribute; and it is assumed that, unless the steamers call at Brisbane, Queensland will hold aloof also. As an inducement to secure a subsidy from Victoria, it is stated that the steamers will make Melbourne the terminal port. The exact position, however, is not known to Government, but it is now reported that the service is to commence from Sydney early next month. This is the position of what at present promises to be an unlooked-for development of the Vancouver route. It would be premature to speculate as to the effect such a service would have on this colony or the San Francisco service. It must be admitted, however, that there is not room just now for the profitable running of the two services. I hope to be able to advise you more definitely by next mail. I have, &c, A. J. Cadman, W. B. Perceval, Esq., Agent-General for New Zealand, London. For the Premier.

No. 44. The Secretary, General Post Office, London, to the Hon. the Postmaster-General, Wellington. Sir,— - • General Post Office, London, 7th April, 1893. With reference to your letter of the 3rd November last, I beg leave to inform you that, after considering the renewed representations made by the Agent-General for New Zealand, the Lords Commissioners of Her Majesty's Treasury still regard the circumstances of the case as not justifying a departure from their decision not to give special support to the packet service which the colony maintains to and from San Francisco. Their Lordships have, however, agreed to increase the payment for the Pacific transit of the outward mails from lOfr. per kilogramme of letters and post-cards, and 50c. per kilogramme of other articles, to lOfr. 12c. and 67c. respectively; but they reserve the right to revert to the rate now generally accepted by countries in the Union after the date of the New Postal Union Congress, when it will, of course, be open to the New Zealand Government to make any proposal it may think fit for a change in the practice as regards the apportionment of the rates paid for sea-transit. Dating, therefore, from the Ist November, 1892, payment may be claimed at these higher rates, the equivalents in English money and weight being— Letters and post-cards ... ... ... ... ... 43'71d. per pound. Other articles ... ... ... ... ... ... 2'B9d. „ The Agent-General has claimed on behalf of the colony that the payment for the Pacific transit of outward mails up to the end of the period regulated by the special understanding should be at the rate of 12s. a pound, and not 11s. a pound, as held by this department. It is necessary, therefore, to explain that the Treasury authority was for payment of a rate equal to what the colony paid the packet contractors, but not exceeding 12s. a pound; and in a letter from Sir Francis Bell, dated the 17th November, 1891, it was stated that the New Zealand House of Eepresentatives had approved the offer of payment for the San Francisco service at the rate of 11s. per pound of letters, while in the New Zealand Post Office report for 1891 (issued last August) it is stated (page xv.) that these terms were accepted by the contractors. On these grounds the rate of 12s. a pound claimed by your office in the accounts with this department was reduced to 11s.; but, if the higher rate was actually paid by the colony, the accounts can of course be adjusted accordingly for the period during which the Treasury has authorized the continuance of payment at special rates — i.e., from the Ist November, 1891, to the 31st October, 1892. I am, &c, H. BUXTON FORMAN, The Postmaster-General, Wellington. For the Secretary.

No. 45. The Agent-General to the Hon the Peemiee. Sir,— Westminster Chambers, 13, Victoria Street, London, S.W., 14th April, 1893. I beg to enclose herewith copy of letter which I have received from the General Post Office, stating that, while not departing from their decision in respect to the apportionment of the expense of the San Francisco mail-service, the Imperial Treasury have agreed to increase the payment for the Pacific transit from lOfr. per kilogramme of letters and post-cards, and 50c. of other articles, to lOfr. 12c. and 67c. respectively. In a note which I had previously received from the Colonial Office, intimating that the Treasury had decided to make these increased payments, Mr. Under-Secretary Meade estimates that the loss to the colony would be thereby reduced from £2,539 to £1,975, or by about £564.

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In making these increases, the Treasury is evidently tailing Dacli on tne computations maae cy the General Post Office in Memo. No. 10, given at page 12 of a paper entitled "A Brief Account of the Formation of the Universal Postal "Union," &c, copy of which was transmitted to you with Mr. Kennaway's memo, of the 16th October, 1891. I have, &c, The Hon. the Premier, Wellington. W. B. Pekceval.

Enclosure in No. 45. The Secbetaey, General Post Office, London, to the Agent-Genebal. Sic,— General Post Office, London, E.C., 13th April, 1893. You have doubtless been informed by the Secretary of State for the Colonies of the result of the further representations made by you through him to the Treasury upon the subject of the packet service which the New Zealand Government maintains to and from San Francisco—viz., that their Lordships still regard the circumstances of the case as not justifying a departure from their previous decision, but have agreed to increase the payment for the Pacific transit of the outward mails from lOfr. per kilogramme of letters and post-cards, and 50c. per kilogramme of other articles, to lOfr. 12c. and 67c. respectively, with a reservation of their right to revert to the rate now generally accepted by countries in the Union after the date of the new Postal Union Congress, when it will, of course, be open to the New Zealand Government to make any proposal it may think fit for a change in the practice as regards the apportionment of the rates paid for sea-transit. A letter in this sense has been addressed to the Postmaster-General of New Zealand, requesting that these higher rates may be claimed from the Ist November last. With regard to your claim that the payment for the Pacific transit of outward mails up to the end of the period regulated by the special understanding should be at the rate of 12s. a pound, I have to remind you that the Treasury authority was for payment of a rate equal to what the colony paid the packet contractors, but not exceeding 12s. a pound. In a letter from Sir Francis Bell, dated the 17th November, 1891, it was stated that the New Zealand House of Eepresentatives had approved the offer of payment for the San Francisco service at the rate of 11s. per pound of letters, and in the New Zealand Post Office Eeport for 1891, issued last August, it is stated (page xv.) that these terms were accepted by the contractors. On these grounds the rate of 12s. a pound claimed by New Zealand in the accounts with this department was reduced to 11s., but the Colonial Postmaster-General has now been informed that, if the higher rate was actually paid by the colony, the accounts can, of course, be adjusted accordingly for the period during which the Treasury has authorized the continuance of payment at special rates—that is, from the Ist November, 1891, to the 31st of October, 1892. I am, &c, H. BUXTON FOEMAN, W. B. Perceval, Esq., Agent-General for New Zealand. For the Secretary.

No. 46. The Hon. the Postmastee-Genebal to the Secebtaey, General Post Office, London. Post Office and Telegraph Department, General Post Office, "Wellington, g lKj _ 12th June, 1893. I have the honour to acknowledge the receipt of your letter of the 7th April last, notifying the decision of the Lords Commissioners of Her Majes'ty's Treasury to increase the payment for the Pacific transit of the outward British mails by the San Francisco mail-service from lOfr. per kilogramme of letters and post-cards, and 50c. per kilogramme of other articles, to lOfr. 12c. and 67c. respectively, with the reservation, however, to revert to the rate now generally accepted bycountries in the Postal Union after the date of the new Congress. I also learn from your letter that payment for the Pacific transit of the British outward mails for the period from the Ist November, 1891, to the 31st October, 1892, will be made at the rate of 12s. instead of 11s. per pound of letters, should the higher rate have been paid by this colony to the contractors. In thanking you for having recognised the claims put forward by this colony, I have to inform you that progress-payments for the contract period ended the 24th November last have been made to the contractors at the rate of 12s. per pound of letters. It is therefore assumed that the higher rate may now be claimed, and that the accounts for the period from the Ist November, 1891, to the 31st October, 1892, will be adjusted accordingly. I have, &c, W. Gbay, The Secretary, General Post Office, London. For the Postmaster-General.

No. 47. The Hon. the Peemiee to the Agent-General. g IB) _ Premier's Office, Wellington, 13th June, 1893. I have the honour to acknowledge the receipt of your letter of the 14th April, enclosing copy of one which you had received from the Secretary, General Post Office, London, in which you were informed that, while not departing from its decision in respect of the apportionment of the expense of the San Francisco service, the Imperial Treasury had agreed to increase the payment for the Pacific transit from lOfr. per kilogramme of letters and post-cards, and 50c. of other articles, to lOfr. 12c. and 67c. respectively. 4—F. 6.

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The Postmaster-General has also received similar advice from the London Post Office, as well as an intimation that 12s. per pound of letters would be allowed for the Pacific transit of the outward British mails in the event of payment of this rate having been made to the San Francisco contractors for the contract period ending the 31st October last. The London Post Office has been informed that the progress-payments to the contractors in respect to the period in question were made at the higher rate, and the Postmaster-General at the same time acknowledged the consideration which had been shown the colony. I shall be obliged, however, if you would express to the Colonial Office the Government's appreciation of the action of both the Treasury and the Post Office in these matters. I have, &c, A. J. Cadman, W. B. Perceval, Esq., Agent-General for New Zealand, London. For the Premier.

UNITED STATES TEANSIT.

No. 48. Mr. Ceeighton to Mr. Geat. Sic, — San Francisco, 4th May, 1892. I enclose herewith copy of correspondence between the United States postal authorities and Messrs. J. D. Spreckels and Bros., general agents for the Oceanic and Union steamship Companies, touching the detention of the " Monowai " last January. You have been advised of the cause of such detention in previous correspondence. The accompanying letters were submitted to me by Messrs. Spreckels, and their perusal may interest you. Should the last instalment of the mail miss connection at any point between New York and Ogden, the fact is to be promptly telegraphed to San Francisco by the officer in charge of the Eailway Mail Service. I have, &c, W. Gray, Esq., Secretary, Post Office, Wellington. Eobt. J. Ceeighton.

Enclosure 1 in No. 48. The Postmasteb, San Francisco, to Messrs. J. D. Speeckels and Beos. San Francisco Post Office, Office of the Postmaster, San Francisco, Cal., Gentlemen,— 3rd May, 1892. I beg to transmit herewith to you the voluminous correspondence representing the investigation which has been made of the delay in the receipt of the through British mails for steamer " Monowai," which caused said steamer to be detained until 12th January. You will observe that the matter has been very carefully considered by all the postal and railway officials on the line between here and New York, and the decision reached that the present arrangement of sending the final instalment of thase mails from New York will be continued. Provision will furthermore be made for promptly notifying this office in the case of any failure of connection at Chicago, such as gave rise to the irregularity under consideration. It is a contingency which fortunately is not apt to frequently arise, and I am very much in hopes that you will not have any further cause of complaint on this score. Will you kindly return all these papers after perusal, and kindly oblige Yours, &c, Samuel W. Backus, Postmaster. J. D. Spreckels and Bros., 327, Market Street, San Francisco.

Enclosure 2 in No. 48. The Supeeintendent, Eailway Mail Service, New York, to the Geneeal Supeeintendent. Eailway Mail Service, Office of Superintendent, New York, Sib,— 13th April, 1892. Enclosed herewith I return the papers regarding the detention of the steamer " Monowai" at San Francisco until 12th January, on account of the late arrival at San Francisco of sixteen bags of mail, despatched from New York on 6th January by the 9 p.m. train, 11, N.Y. Central, thirteen of these bags being of domestic origin, made up in the New York office, and three other bags being for Fiji, made up respectively at London, Glasgow, and Dublin. The record shows that 200 bags of British Australian mail arrived at New York by the s.s. " Bothnia " at 7 a.m. on 6th January, and were forwarded in accordance with orders by the 6 p.m. N.Y. Central train, No. 5, the same day. There also arrived by the " Bothnia," enclosed to the New York office, three bags for Fiji above described. These three bags, on account of being enclosed to New York, are always forwarded the same as mails of domestic origin from New York, and, consequently, were held for the 9 p.m. train, No. 11. The papers herewith returned contain a statement from the transfer clerk at Chicago, saying that the mail despatched from New York on 6th January, by train 11, missed connection at Chicago on Bth January with the 3 a.m. C. B. & Q. train, fast mail, and were hence delayed in arriving at San Francisco, whereas the 200 bags of British Australian mail, which left New York on 6th January, at 6 p.m., by New York Central train 5, went through without delay.

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The New York office has been despatching the Australian mail of domestic origin by the 9 p.m. New York Central train 11, under orders from the department, since 1887, and the advertisements to the public announce that the mails for Australia are closed at 3 p.m., and despatched daily up to and including the day upon which the Australian mails arrive from Great Britain. Hence the action of the New York office in despatching, on 6th January, the mail of domestic origin by a later train than the mail of British origin was in conformity with existing orders and the notices to the public. When this order was given to the New York office, your office, in accordance with the recommendation of this office, provided that the final despatch of the British Australian mail from New York, west bound, should be made by the 9 p.m. New York Central train. Since that time (1887) complaints of delay have been made from San Francisco, and the orders have been modified by your office, so that the final despatch of the British Australian mail from New York, west bound, is now made either by the 6 p.m., 9 p.m., or 9.10 a.m. New York Central train. Hence, if this mail should arrive at New York from Great Britain early in the morning, in time to connect the 9.10 a.m. train, the mail of domestic origin would not be forwarded westward until twelve hours later, and is therefore subject to any cause of delay that might arise after the British Australian mail has gone west. The principal reason for the recommendation that was made by this office in 1887, to make the final despatch of this mail by the 9 p.m. train only, was the understanding that the steamer sailed from San Francisco only after the arrival of the British Australian mails, and would not be held for the mail of domestic origin from New York. If this condition still prevails, this office would deem it advisable to renew the old instructions for the despatch of the whole mail by the 9 p.m. train, regardless of the hour of its arrival during the day at New York by steamer, thus revoking the existing orders, which contemplate its despatch by any one of the three trains mentioned—viz., 9.10 a.m., 6 p.m., and 9 p.m. New York Central trains. If, on the other hand, the existing arrangements contemplate holding the steamer at San Francisco until the trans-continental connection arrives, which left New York at 9 p.m., five days earlier, the present arrangement of despatches might continue. Eespectfully, E. C. Jackson, Superintendent, Eailway Mail Service. Hon. James E. White, General Superintendent.

No. 49. Mr. Geay to Mr. Cbeighton. Post Office and Telegraph Department, General Post Office, Wellington, Sic,— 21st June, 1892. I have the honour to acknowledge the receipt of your letter of the 4th ultimo, and to thank you for the copy of correspondence, which you sent therewith, exchanged between Messrs. J. D. Spreckels and Brothers and the United States Post Office, on_ the subject of the detention of the " Monowai" at San Francisco in January last. I note the action taken. I have, &c, E. J. Creighton, Esq., W. Geay, Secretary. Eesident Agent for New Zealand, San Francisco, California.

CHANGE OF SAILING DATE.

No. 50. The Ebsidbnt Agent, San Francisco, to the Seceetaby, General Post Office, Wellington. g IB San Francisco, 7th January, 1893. I have the honour to inform you that the Cunard Steamship Company has advised Messrs. Spreckels, general agents of the Oceanic Steamship Company, that commencing April next the British mail from London connecting at San Francisco with the New Zealand and Australian mail-boat will be carried by either the " Etruria " or the " Campania." As these are very fast ships, the agents anticipate' that the outward mail will reach this city on a Thursday, and propose to change the day of sailing accordingly, subject to the approval of the Postmaster-General. To meet this contingency a pro forma time-table has been prepared, copy of which I enclose. This will be issued in advance to the company's agents, and to Cook and Sons, for their guidance, pending approval. It is important, in the interest of the service, to have as prompt despatch as possible at this port, and if the outward mail should arrive on Thursday the steamer should sail for the colonies the same day. This arrangement would proportionately shorten the time to Auckland and Sydney ; and if the deviation to Apia were not imperative a further saving of a day in transit would be possible. The " Bothnia," which brought the December mail, made a long passage, but not more so than usual with her. New York despatches show that it should arrive here on Monday, the 9th January, on which date the " Alameda "is advertised to sail. As at present advised, we are not likely to have the " Bothnia " used again as a relief boat for the mail-packet service. The " Urania," which sailed ahead of the "Bothnia" on the Cunard Company's schedule, was six days overdue, having broken a shaft in heavy weather. The " Alameda" had a very bad experience between Auckland and Samoa, as the enclosed newspaper report will show. The needed repairs have been made to the ship. Fortunately the mail was not injured by the water to any appreciable extent,

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I have had no further information regarding the burned mail than that already communicated to you. The railroad people made no report of the accident, and the first information was conveyed in the Press despatch from Chicago. Telegraph operators at wayside stations are railroad servants, and they have their instructions not to give out disagreeable news. Congress is in session, but it is not certain that any attempt will be made to encourage American shipping, whereby the Australian service would be benefltted, before _ next March. President Harrison recommended subsidies, but everything will depend upon the policy of the new Administration. Pending legislation, however, may indirectly bring it about. A Bill to check immigration has been introduced, which will probably be carried. If so, the great European steamship companies will lose the passenger-traffic so far as " immigrants" are concerned. A conference of these companies is to be held to consider what should be done, and it has been suggested that they should boycott New York and all other American ports and make Halifax their Atlantic port of call. Should this policy be adopted, Congress would infallibly pass a Subsidy Bill to enable American shipyards to build steamships sufficient for American traffic ; but, although I scarcely think such an extreme measure would be resorted to by the foreign steamship owners, its possibility and the discussion which the threat has provoked will doubtless have considerable influence on Congress, which would forget party obligations to uphold the national prestige. Meantime there does not seem to be much prospect for a Canadian Pacific service. It is reported that the three " Empresses" will be placed on the Atlantic trade this year, their places being supplied in the China and Japan trade by ships of the Guion line. These ships are far inferior to the Canadian Pacific's vessels. President Harrison will also in all probability issue a proclamation before retiring, which will very seriously cripple Canadian commerce, and especially the Canadian Pacific Eailroad's business. Under an arrangement with the United States Treasury Department merchandise intended for American points could be shipped in bond, under seal, from any foreign port, over the Canadian Pacific road, its cars being hauled over American roads to their destination. This arrangement has enabled the Canadian Pacific railway to divert the bulk of the China and Japan trade, and also a great deal of the Pacific coast trade, from American railroads, because it was enabled to cut rates, while the American roads were debarred from meeting this policy by the Inter-State Commerce Act. The President now proposes to place Canada on the same footing as any other country by abolishing this bonded privilege. When this has been done, the main source of traffic receipts for the Canadian Pacific railroad will be dried up, and the China trade will be taken away from Vancouver. Besides, it will soon be compelled to pay interest on its bonds, which has heretofore been paid out of the Dominion taxes. Under these conditions, Ido not think it is at all probable that the Canadian Pacific would burden itself with a costly non-paying line to Australia. I have, &c, EOBBET J. CeEIGHTON. W. Gray, Esq., Secretary, General Post Office, Wellington, New Zealand.

No. 51. The Seceetaey, General Post Office, to the Managing Dieectoe, Union Steam Ship Company. Post Office and Telegraph Department, General Post Office, Wellington, g IE " 2nd February, 1893. I have the honour to inform you that this office has been advised that from April next the mails from London for the colonies via San Francisco will be carried across the Atlantic by either the " Btruria "or the " Campania." As these are very fast vessels, it is anticipated that the mails will reach San Francisco on Thursday in the place of Friday, as at present. W T ill you be good enough to inform me whether your company is willing to agree to the day of departure of the mail-steamer from San Francisco being again altered to Thursday. I have, &c, The Managing Director, W. Geay, Secretary. Union Steam Ship Company of New Zealand (Limited), Dunedin.

No. 52. The Managing Dieectoe, Union Steam Ship Company, to the Secbetaby, General Post Office. Union Steam Ship Company of New Zealand (Limited), Dunedin, g IE) 7th February, 1893. I have the honour to acknowledge receipt of your favour of 2nd instant asking our consent to the departure of the mail-steamers from San Francisco being altered to Thursday from April next, when it is anticipated the mails from London will reach San Francisco a day earlier than at present. In reply to the above, I may mention that our friends, Messrs. J. D. Spreckels and Bros. Company, have already anticipated this request, and have issued a pro forma time-table in which the departures from San Francisco are fixed for Thursdays, beginning with the " Mariposa " on 27th April. I understand that a copy of this time-table has been forwarded to you through Mr. Creiehton. I have, &c, T. W. Whitson, For the Managing Director. W. Gray, Esq., Secretary, General Post Office, Wellington.

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No. 53. The Secretary, General Post Office, Wellington, to the Resident Agent, San Francisco. Post Office and Telegraph Department, General Post Office, Wellington, Sir,— 18th February, 1893. I have the honour to acknowledge the receipt of your letter of the 7th ultimo, intimating that it is proposed to alter the day of sailing of the San Francisco mail-steamers from Friday to Thursday, in consequence of the change in the Cunard Steamship Company's vessels, and in reference to the improbability of a Canadian Pacific service The Postmaster-General has agreed to the substitution of Thursday for Friday as the day of departure of the mail-steamers from San Francisco, commencing, from the 27th April next, and the time-tables will be altered accordingly. The Union Steam Ship Company has been informed. I have, &c, E. J. Creighton, Esq., W. Geay, Secretary. Eesident Agent for New Zealand, San Francisco, California.

No. 54. The Secretary, General Post Office, to the Managing Dieectoe, Union Steam Ship Company. Post Office and Telegraph Department, General Post Office, Wellington, Sir,— " 18th February, 1893. I have the honour to inform you that, as the mails from London for Australia and New Zealand will, from April next, be carried across the Atlantic by either of the Cunard Steamship Company's steamers " Etruria" or "Campania," which are fast vessels, it is anticipated that the will mails reach San Francisco one day earlier than hitherto. The Postmaster-General has, therefore, ■ decided that Thursday, 27th April, and every fourth succeeding Thursday, will be substituted for Friday, 28th April, and every fourth succeeding Friday, as the days of departure of the mail-steamer from San Francisco to Auckland. I enclose an amended time-table. I have, &c, The Managing Director, W. Geay, Secretary. Union Steam Ship Company of New Zealand (Limited), Dunedin.

No. 55. The Hon. the Postmaster-Geneeal, Wellington, to the Supeeintendent of Foeeign Mails, Washington. (Letter in similar terms to No. 54.)

No. 56. The Managing Dieectoe, Union Steam Ship Company, to the Secbetary, General Post Office. Union Steam Ship Company of New Zealand (Limited), Dunedin, Sib,— 28th February, 1893. I am to-day in receipt of your favour of the 18th instant, and note that the PostmasterGeneral has approved of Thursday being substituted for Friday as the day of departure of the mail-steamers from San Francisco from 27th April next. I have, &c, T. W. Whitson, For the Managing Director. W. Gray, Esq., Secretary, General Post Office, Wellington.

No. 57. The Supeeintendent of Foreign Mails, Washington, to the Hon. the Postmastee-Geneeal, "Wellington. Post Office Department, Office of Foreign Mails, Washington, D.C., g lHj _ 23rd March, 1893. Eeferring to your letter of the 18th ultimo, advising this department that, for reasons therein stated, your Administration has directed that Thursday, the 27th of April next, and every fourth Thursday thereafter, shall he substituted for Friday, the 28th of April, and every fourth succeeding Friday, as the days for the sailing from San Francisco of the mail-steamers plying between San Francisco and Auckland, I have the honour, by direction of the PostmasterGeneral, to inform you that due notice of the same has been taken, and that the necessary instructions have been issued to the postmasters of New York and San Francisco. I am, &c, N. M. Brooks, Superintendent of Foreign Mails. The Postmaster-General, Wellington, New Zealand.

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UNITED STATES CONTBIBUTION AND CHABGES. No. 58. The Supeeintendent of Foreign Mails, Washington, to the Hon. the Postmaster-Geneeal, Wellington. Post Office Department, Office of Foreign Mails, Washington, D.C., Sir,— 20th November, 1891. I have the honour, by direction of the Postmaster-General, to inform you that in a letter dated the 2nd ultimo the British office has called attention to the circumstance that, by reason of the entrance to the Universal Postal Union on the Ist October, 1891, of the Australasian Colonies, the British office will no longer settle with this department for the land-transit from San Francisco to New York, and the sea-transit from New York to Queenstown or Southampton, of the closed mails despatched from the colonies for Great Britain via San Francisco; but that such settlement for the United States intermediary transit expenses of said closed mails despatched on and after the Ist ultimo should be had by this department directly with colonies, pursuant to the provisions of Article 4 of the Universal Postal Union Convention, now in force ; and that the colonies had been so informed. The Postal Union Convention signed in Vienna in July last (paragraph 6 of Article 4 and paragraph 7 of Article 17 of the Convention, and paragraph 2 of Article XXIII. of the regulations for its execution) provides that the triennial statistics to be taken in November, 1893, shall furnish the basis for settlement of the accounts for intermediary transit during the years 1892, 1893, and 1894. Consequently, the expenses of the intermediary transit of the mails despatched from the Ist January, 1892, to the 31st December, 1894, will be settled for upon the basis of the weights of the mails despatched from the colonies during the first twenty-eight days of November, 1893. But those statistics will have no bearing upon the mails despatched from the Ist October to the 31st- December of the current year ; and, with a view to the prompt settlement of the transit expenses of said mails, I am directed to suggest that the practice which has heretofore prevailed in the settlement of these accounts with the British office be continued with respect to the mails despatched up to the 31st December next—that is to say, the charges for the United States intermediary transit, territorial and sea—be calculated upon the actual net weight of said mails. Presuming that the proposed arrangement will meet with your approbation, I have to request that you will furnish this department, at your early convenience, with a statement showing, in grammes, the net weights of the letters and other articles (separately) contained in each of the closed mails for Great Britain made up in and despatched from New Zealand via the United States from the Ist October to the 31st December, 1891, in order that the account may be prepared in this department, and transmitted to your Administration for acceptance. I am, &c, N. M. Brooks, Superintendent of Foreign Mails. The Postmaster-General, Wellington, New Zealand.

No. 59. The Supeeintendent of Foreign Mails, Washington, to the Hon. the Postmaster-Geneeal, Wellington. Post Office Department, Office of Foreign Mails, Washington, Sir,— 4th December, 1891. Referring to this department's letter of the 20th ultimo, relative to the settlement of the United States intermediary transit charges on the closed mails from New Zealand for Great Britain, despatched during the period from the Ist October last, the date of New Zealand's entrance to the Universal Postal Union, to the Ist January, 1892, from which date the settlement of all intermediary transit charges will be made upon the basis of the statistics to be taken in November, 1893, I have the honour, by direction of the Postmaster-General, to request that you will cause this department to be informed, at your early convenience, of the net weights (letters and other articles separately) of each of the closed mails despatched from New Zealand to any foreign country through the intermediary of the United States from the Ist October to the 31st December, 1891, inclusive. The information in question is necessary in order that the transit account between your Administration and this department for the period referred to may be prepared ; and the Postmaster of San Francisco reports that the letter-bills of the mails from New Zealand for his office received since the Ist October have not advised the weights of the closed mails, as was the practice previously. I am, &c, N. M. Brooks, Superintendent of Foreign Mails. The Postmaster-General, Wellington, New Zealand.

No. 60. The Hon. the Postmaster-General, Wellington, to the Superintendent of Foreign Mails, Washington. Post and Telegraph Department, General Post Office, Wellington, Sib,— 28th January, 1892. I have the honour to acknowledge the receipt of your letters of the 20th November and the 4th ultimo, and, in reference to your request to be supplied with the net weight of each closed mail

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from New Zealand to any foreign country despatched through the intermediary of the United States from the Ist October to the 31st December last, inclusive, to enable the transit accounts to be prepared, to inform you that the required statement will be furnished by next mail. I desire, however, to point out that this colony's liability for Atlantic transit dates with the mail despatched from Auckland on the sth ultimo, and not from the Ist October. The London office has been advised, and requested to have matters adjusted with your office. As the quantity of mail-matter carried by the San Francisco service is likely to fluctuate very materially for some time to come, this office deems it desirable that payments for the territorial carriage through the United States, and for Atlantic conveyance, should be made on the actual weights of correspondence, and the concurrence of your office to this course is asked. If this be approved, the Mail Agents will be instructed to make out and forward to your office statements of the weights of all transit mails, including those for the United Kingdom, and to furnish duplicates to this office. 1 have > &c -> W. Gray, For the Postmaster-General. The Superintendent, Office of Foreign Mails, Post Office Department, Washington, D.C.

No. 61. The Secretary, General Post Office, Wellington, to the Superintendent of Foreign Mails, Washington. Post Office and Telegraph Department, General Post Office, Wellington, Sib,— 25th February, 1892. Adverting to your letters of the 20th November and of the 4th December, 1891, and my reply thereto of the 28th ultimo, I have the honour to forward you herewith a statement showing the weights of all mails despatched from this colony to countries in transit through the United States during the quarter ended the 31st December last. I would also beg leave to remark that the system of actual weights as against average weights, suggested for adoption in my letter of the 28th ultimo, was intended to apply to United Kingdom mails only, as the correspondence for other countries via the United States is subject to comparatively little fluctuation. I accept with pleasure your proposal to ascertain the transit costs of such correspondence by the Union system of triennial countings. Instructions have now been issued to the Mail Agents of this colony on the AucklandSan Francisco line of steamers to attach in future to the letter-bill for San Francisco a statement showing the net weight, in grammes, of all mails despatched by them to offices in the United Kingdom; and arrear-statements for the mails despatched on the 2nd and 30th ultimo and 27th instant will be posted to your office by the next mail. I have, &c, The Superintendent, W. Gkay, Secretary. Office of Foreign Mails, Post Office Department, Washington, D.C.

Statement showing the Net Weight of Correspondence despatched by the New Zealand Marine Post Office to Countries beyond the United States from the Ist October, 1891, to the 31st December, 1891. Date of Letters and Post- Books and Country of Destination. Despatch. cards. Newspapers. 1891. Grammes. Grammes. ™-«N*- ; ;- ;;; S. 1 ? $25 S^ ... Dec. 5 394,101 3,060,969 Totals 961,003 9,284,103 Other offices^ Vancouver Island Oct. 10 879 10,035 ... Nov. 7 935 11,339 ... Dec. 5 851 12,699 Windsor," Canada '.".'. Oct. 10 4,195 50,797 ... Nov. 7 2,041 42,633 ... Dec. 5 4,989 66,671 West Indies '.'.'. '. Oct. 10 1,389 7,257 ... Nov. 7 567 7,484 "; Dec. 5 964 5,216 Western States of South America Oct. 10 907 3,572 . . Nov. 7 397 2,495 * Dec. 5 397 1,814 Totals 18,511 222,012

* Transit-costs from New York to QueenstoWn for mails despatched on the 10th October and 7th November should be claimed from London, this colony's liability for the transit in question commencing with the mails of the sth December, 1891. _ t _ „. A General Post Office, Wellington, 25th February, 1892. W. Gray, Secretary.

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No. 62. The Sopeeintendent of Foeeign Mails, Washington, to the Hon. the Postmastee-Geneeal, Wellington. Post Office Department, Office of Foreign Mails, Washington, D.C., Sib,— 18th March, 1892. I have the honour, by direction of the Postmaster-General, to acknowledge the receipt of your reply, under date of the 28th January, to this department's letters, of the 20th November and 4th December last respectively, relative to payment to this department of the charges for United States territorial and sea-transit of the closed mails for Great Britain despatched, since the Ist October last from New Zealand via the United States. In this department's letters above referred to your Administration was informed that the transit charges in question should be settled on the basis of the actual net weights, to be furnished by your Administration, of the mails despatched during the period from the Ist October to the 31st December, 1891, inclusive, and that settlement for the transit of the mails despatched on and after the Ist January, 1892, would be made upon the basis of the triennial international transit statistics to be taken in November, 1893. In your reply you state that the responsibility of your Administration for the transit charges of the mails in question commenced with the mails despatched on the sth December last, and that the British office should settle the charges on said mails despatched up to that date. In reply, I have to inform you that your statement has been communicated to the British office with a view to a settlement with that office for the transit charges on the closed mails despatched from the colonies between the Ist October and the sth December, 1891. It is understood that your Administration will settle with this department direct for the intermediary transit of the closed mails despatched on and after the sth December last, and that, up to the date when the international transit statistics to be taken in November, 1893, take effect, payment will be made upon the basis of the actual net weights of the mails conveyed. In this department's letters above mentioned, that date was stated to be the Ist January, 1892; but an examination of the proceedings of the Postal Union Congress, held in Vienna last summer, shows that the transit statistics taken in May, 1890, were continued in force up to the Ist July, 1892, the date upon which the Vienna Convention becomes operative ; so that the payments from your Administration to this department for the transit of the closed mails despatched from the sth December, 1891, to the 30th June, 1892, will be made on the basis of the actual net weights; and the PostmaFter-General would thank you, therefore, to furnish a statement of said weights as soon as practicable after each mail is despatched. In view of your remarks that, for a time at least, payment upon the basis of the actual net weights would be more satisfactory, because the weights will naturally fluctuate, it is presumed that the continuation of the payments upon the actual weights up to the Ist July next will meet with your approval, but that you will have no objection to adopting, on and after the Ist July, 1892, the uniform practice of the countries of the Postal Union—viz., to settle all intermediary transit charges exclusively upon the data furnished by the triennial international transit statistics. As understood at this department, the British office is responsible from the Ist October to the sth December, 1891, for the transit charges on the closed mails for Great Britain only; and that the responsibility of your Administration for the transit charges on closed mails for other destinations commences on the Ist October, 1891. I am, &c, N. M. Beooks, Superintendent of Foreign Mails. The Postmaster-General, Wellington, New Zealand.

No. 63. The SuPEEittTENDEHT of Foeeign Mails, Washington, to the Hon. the Postmastee-Geneeal, Wellington. Post Office Department, Office of Foreign Mails, Washington, D.C., Sib,— 24th March, 1892. I have the honour, by direction of the Postmaster-General, to acknowledge the receipt of your communication of the 25th ultimo, transmitting, in compliance with the requests in this department's letters of the 20th November and 4th December last respectively, a statement showing the net weights of the closed mails for foreign destinations despatched between the Ist October and the 31st December, 1891, from New Zealand vid the United States. Due notice has been taken of your statement that the New Zealand Mail Agents on the steamers plying between Auckland and San Francisco have been instructed to hereafter note on the letter-bills for the Post Office of San Francisco the weights of similar closed mails, and that a statement showing the weights of the closed mails despatched during the months of January and February will be transmitted to this department by the next mail. Eelative to your remarks respecting the method of accounting for the United States intermediary transit charges on the closed mails despatched in future, I have to invite your attention to this department's letter of the 18th instant, in which you are advised that from the Ist July next—the date upon which the Convention of Vienna becomes operative—this department prefers that all intermediary transit charges should be settled on the basis of the international statistics to be taken in November, 1893. I am, &c, N. M. Bbooks, Superintendent of Foreign Mails, The Postmaster-General, Wellington, New Zealand.

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No. 64. The Hon. the Postmastee-Geneeal, Wellington, to the Superintendent of Foeeign Mails, Washington. Post Office and Telegraph Department, General Post Office, Wellington, Sib,— 17th May, 1892. I have the honour to acknowledge the receipt of your letters of the 18th and 24th March last, on the subject of payment of transit charges. In reference to the third paragraph of the former letter, I have to point out that mine of the 28th January stated that this department claimed exemption from only the Atlantic transit charges on mails depatched before the sth December last. For the United States territorial transit New Zealand is liable for payment from the Ist October preceding. The British Post Office is therefore responsible for the cost of the Atlantic conveyance of the closed mails for Great Britain up to the sth December last. This office will settle direct with your own the accounts for the intermediary transit. I note your representations as to changing the basis of payment, and the date thereof; but I venture, nevertheless, to express the hope that you will see fit to acquiesce in the payment by actual weight for some time longer than the period to the 30th proximo. The variation which I have mentioned in the quantity of mail-matter despatched and received by the San Francisco service is likely to continue until the mail-services between New Zealand and the United Kingdom are placed on a more permanent footing than they are on at present. If, therefore, you can see your way to allow the payment by actual weight to be continued up to, say, the expiry of the present San Francisco service contract in November next, it will be, I anticipate, the means of securing a much fairer adjustment of accounts than would be obtainable through the triennial statistics. It should also be remembered that the payments to the contractors for sea-conveyance are based on the actual weights. I have, &c, .... W. Geat, The Superintendent, For the Postmaster-General. Office of Foreign Mails, Post Office Department, Washington, D.C.

No. 65. The Supeeintekdent of Foeeign Mails, Washington, to the Hon. the Postmastee-Geneeal, Wellington. Post Office Department, Office of Foreign Mails, Washington, D.C., See,— 20th June, 1892. I have the honour, by direction of the Postmaster-General, to acknowledge the receipt of your letter of the 17th ultimo, with reference to previous correspondence closing with this department's letter of the 24th March last, relative to the settlement of the claims of this department for compensation for the intermediary transit of closed mails made up in New Zealand and despatched to San Francisco to be forwarded to destinations beyond the United States. Due notice has been taken of your statement that your Administration is to be held responsible for the United States territorial transit charges on the closed mails in question despatched on and after the Ist October, 1891, but that it is responsible for the charges for the Atlantic sea-con-veyance of the said mails despatched only on and after the sth December, 1891, the British office being responsible for the charges for the Atlantic sea-conveyance of the said mails despatched up to the sth. December last. Eespecting your request that the present method of settling the intermediary transit charges on the closed mails in question, upon the basis of the actual net weights of the mails, be continued for a short period after the Ist proximo, I am directed to inform you that, in view of the representations in your letter under reply, this department consents to continue the present method up to the Ist January, 1893, but prefers that the transit charges on all closed mails despatched on and after Ist January, 1893, shall be settled exclusively upon the basis of the international transit statistics to be taken in November, 1893, pursuant to the provisions of Article 4 of the Universal Postal Convention of Vienna, and Article XXIII. of the regulations for its execution. In this connection, it may be well to call your attention to the circumstance that, notwithstanding this department settles upon the statistical basis with all other postal administrations for the intermediary transit of closed mails, it does not settle upon that basis with the steamship companies which convey the closed mails from the United States, but makes settlement with those companies upon the actual net weights of the mails conveyed. Consequently, it is necessary for this department to be advised of the net weights of each closed mail made up in other countries and despatched to the United States to be forwarded by sea to destinations beyond the United States ; and I am directed, therefore, to request that, for the future, you will cause the net weights (in grammes) of each closed mail made up in New Zealand and despatched to San Francisco to be forwarded by sea to destinations beyond the United States to be invariably stated opposite the entry of the mail in question in the letter-bill of the mails for the office of San Francisco. It will not be necessary to enter on the letter-bills for San Francisco the weights of the closed mails for Canada, for the reason that those mails are forwarded overland to Canada, and, consequently, do not enter into the accounts between this department and the steamship companies. I am, &c, N. M. Bbooks, Superintendent of Foreign Mails. The Postmaster-General, Wellington, New Zealand. 5—F. 6.

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No. 66. The Hon. the Postmaster-General, Wellington, to the Superintendent of Foreign Mails, Washington. Post Office and Telegraph Department, General Post Office, Wellington, Sir,— 6th September, 1892. I have the honour to acknowledge the receipt of your letter of the 20th June last, in the matter of payment of transit charges for correspondence despatched from New Zealand to the United Kingdom via the United States. With reference to the Atlantic transit, I have to inform you that the London office now wishes this office to pay to your own direct all the charges incurred after the Ist October, 1891, and afterwards reclaim from it those for the period between the Ist October and the sth December. It will be noticed, therefore, that this office will pay for both territorial and sea conveyance from the Ist October. I am obliged for your agreeing to allow the payment of the transit charges according to actual net weight of the mails to subsist up to the Ist January next, and preparation will be made for payment on the basis of the triennial statistics from that date. Your remarks on the settlement of accounts with the steamship companies on the basis of actual weight are noted. In reply to your request in reference thereto, I have to inform you that the only closed mail now made up from New Zealand for despatch through the United States, and not already shown on the transhipment form, giving actual weight in grammes, is that for Vancouver Island. Although you have excepted Canada (no doubt that portion to which land-carriage only is ever required) from the scope of your request, the weight of the Vancouver mails, which may sometimes be carried by sea, will be advised in grammes on the San Francisco letter-bill. I have, &c, W. Gray, The Superintendent, For the Postmaster-General. Office of Foreign Mails, Post Office Department, Washington, D.C.

No. 67. Mr. Creighton to Mr. Gray. Sir,— San Francisco, 20th July, 1892. I have the honour to enclose herewith copy of memorial to Congress on the subject of the Australian mail-service adopted by the San Francisco Chamber of Commerce at its regular quarterly meeting yesterday, and which had been forwarded by the Board of Directors to the Califorman delegation in Washington on the 9th instant in anticipation of the action of the Chamber. It is hardly probable that anything will be accomplished during the present session of Congress, as the adjournment is fixed for the 25th instant. Upon the assembling of Congress in December the matter will be taken up and pushed vigorously. The question has been quietly but extensively agitated, and powerful influences will be exerted to put the Australian mail-service on a permanent footing, in view of the threatened opposition by the Canadian Pacific Company. This is a matter which affects the earnings of all American trans-continental railroad-lines. I have, &c, W. Gray, Esq., Secretary, Post Office, Wellington. Bobt. J. Creighton.

Enclosure in No. 67. The San Francisco Chamber of Commerce to Congress. To the Senate and House of Eepresentatives of the United States in Congress assembled. This memorial of the San Francisco Chamber of Commerce, adopted at a meeting of the said Chamber on the 19th day of July, 1892, respectfully showeth, — 1. That for a period of twenty-two years past direct mail-communication has been maintained between the port of San Francisco and the Colonies of New Zealand and Australia through subsidies paid almost exclusively to American steamship companies by the New Zealand and Australian Governments, and that such direct mail-service has resulted in great expansion of American trade and commerce. 2. That the Australian mail-service is performed at the present time by the Oceanic Steamship Company of San Francisco, an exclusively American corporation, with the aid of one British steamship, the employment of which is obligatory under the contract with the New Zealand Government, which pays most of the cost. 3. That this contract expires in November, 1892, and there is almost a certainty that the service will be abandoned unless the United States Post Office hereafter bears a fair and reasonable share of the cost of maintaining it. i. That the withdrawal of the Oceanic Steamship Company's vessels from the Australian trade would be in the nature of a calamity to American trade, depriving our merchants and manufacturers of direct connection with the rich and progressive Anglo-Saxon commonwealths in the Pacific Ocean, and compelling them to send their correspondence the roundabout way of England and the Bed Sea route, which, by reason of the great length of time occupied in transit from this country, would be fatal to our commerce ; or by the heavily subsidised Canadian line from Vancouver, 8.C., which this Chamber is informed and believes will start in opposition to the American line from San Francisco about the month of November next, when the existing contract with the Oceanic Company expires.

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5. This Chamber desires to protest in the most emphatic manner against the abandonment of the Australian service as a mail and commercial route to the Antipodes, in favour of the Canadian Pacific Company, which has already diverted so large a proportion of the Orient trade from San Francisco to its subsidised and protected steamship and railroad system ; and it desires to impress upon Congress the absolute and imperative necessity for appropriating a sum sufficient to maintain an exclusively American mail, freight, and passenger service in competition with a subsidised British rival. The Canadian Pacific Company receives $400,000 a year for a four-weekly service between Vancouver and Hong Kong, and has the assurance of an equal sum for a similar service to Australia, powerful steamships for the performance of which are now being built. If, therefore, an American line is to be maintained, it must be placed on a financial footing to compete, on equal terms, with the subsidised British line, as it cannot look for any money-aid from the Australian Colonies, or to be employed carrying their mail after an exclusively British route has been established. 6. That the statistics of foreign commerce issued by the United States Treasury Department show the value and importance of the Australian trade to this country. For 1890, the exports and imports to and from Australasia aggregated $15,864,493 ; in 1891 they were valued at $20,972,493, an increase of $5,118,005, or nearly 33 per cent. During 1891 American exports to Australasia aggregated $13,564,921; imports from Australasia, $7,407,577, showing a trade balance in our favour of $6,157,344, or nearly one-third of the total volume of business. An abandonment of the direct Australian mail-service from San Francisco by American ships (which is inevitable, unless Congress makes a sufficient appropriation to maintain it on an equality with the Canadian service as to speed and class of vessels) would be a virtual abandonment of this large, profitable, and growing trade with Australia to Great Britain, which is precisely what the British Government has been striving to bring about by its postal policy for the past dozen years. 7. The report of the Postmaster-General for 1891 also shows the importance of the Australian service for postal purposes. Of correspondence originating in the United States, the Oceanic Steamship Company carried to Australia and New Zealand in 1891, 3,793,787 grammes letters, or 8,3651b., and 100,145,800 grammes (220,8211b.) prints, for which the United States paid $51,000 compensation, and $171-94 for inward carriage of 2851b. of letter-mail from Australia to San Francisco. This compensation is wholly inadequate for the service rendered. If the Oceanic Company's steamers are withdrawn from the Australian route, as they must be unless Congress appropriates an adequate sum to sustain the service on an independent American national basis, all this correspondence must be sent via England and the Eed Sea, as already stated, or via Vancouver and the Canadian route, thereby paying toll to our commercial rivals, and placing the United States under the necessity of employing foreign ships to transport its mail to Australia. 8. This Chamber therefore feels it incumbent upon it to respectfully, but firmly, press upon Congress, as a matter of urgency, the necessity for appropriating such sum as shall insure the continuance of the American mail-service to Australia by the Oceanic Company's ships, and take such further measures as may insure its permanence and the extension of American commerce on the Pacific Ocean. ___^__________^__

No. 68. The Secretary, General Post Office, Wellington, to Mr. Creighton. Post Office and Telegraph Department, General Post Office, Wellington, g lE> _ 31st August, 1892. I have the honour to acknowledge the receipt of your letter of the 20th ultimo, enclosing copy of the memorial of the previous day, from the San Francisco Chamber of Commerce to Congress, on the subject of the Australian mail-service, which I duly submitted to the Hon. the Post-master-General. The decision of Congress on the appeal now put forward.will be looked tor with interest. lire Postmaster-General hopes that it will be favourable, the more so as Congress has now an additional stimulus to action on its own behalf in the fact that the Imperial Government has decided to still further reduce its contribution in aid of the San Francisco service. Oα the 15th instant the AgentGeneral received a letter from the Post Office declining to renew the San Francisco apportionment except on a strict Postal Union basis. This means that, instead of paying 12s. per pound on letters only for conveyance of its mails from San Francisco to Auckland, Great Britain will pay 3s. Bd. on letters, and about 3d. on other articles, per pound. The reduction, of course, affects the contractors solely. Had it been in operation last year the contractors would have received, it is estimated, £1,975 less than they did. The Agent-General has been requested to protest, and there is hope of his being successful, but, of course, the chances of failure must be counted on in any consideration of this question. E. J. Creighton, Esq., I have, &c, Eesident Agent for New Zealand, San Francisco, California. W. Gray, Secretary.

No. 69. The Superintendent of Foreign Mails, Washington, to the Hon. the Postmasteb-General, Wellington. Post Office Department, Office of Foreign Mails, Washington, D.0., glB _ 6th October, 1892. Eeferring to your reply, under date of the 6th ultimo, to this department's letter of the 20th June last, relative to the method of settling for the United States intermediary transit charges

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on the closed mails from New Zealand for destinations beyond the United States, I have the honour, by direction of the Postmaster-General, to inform you that due notice has been taken of your statements —(1) That your Administration will settle the charges for both the United States territorial and sea conveyance of the closed mails in question despatched on and after the Ist October, 1891; (2) that preparation will be made for the settlement of the charges on the closed mails despatched on and after the Ist January, 1893, upon the basis of the international transit statistics to be taken in November, 1893 ; and (3) that the net weights of the closed mails from New Zealand for Vancouver will be advised in the letter-bills of the mails for the office of San Francisco. I am, &c, N. M. Brooks, Superintendent of Foreign Mails. The Postmaster-General, Wellington, New Zealand.

No. 70. Mr. Oeeighton to Mr. Geay. S!E ; . San Francisco, 9th December, 1892. I enclose herewith copy of letter addressed by me to Mr. Brooks, Superintendent of Foreign Mails, in reference to the present status and future prospects of the Califorian mail-service, which I hope will meet with approval. I also enclose extract from President Harrison's annual message to Congress, in which reference is made to the American merchant navy, and the necessity for providing sufficient subsidies to maintain American postal routes. As you will perceive from this extract, Mr. Harrison alludes to the projected Canadian Australian service, and in my communication to the "Washington Postal Department I have likewise adverted to this project, which has been indirectly promoted by American indifference and greed. I shall take further steps to have this matter brought before the Postal and Commerce Committees should there be hesitancy on the part of the Postmaster-General to present my letter and support it. In one respect it is unfortunate that the Administration is retiring in March, because Congress will transact as little business as possible during the short session, and unless an extra session were called the new Congress would not meet until the first Monday in December, 1893. Meanwhile the service might collapse. The chances in favour of an extra session are good, although politicians do not approve of it; but the condition of the Treasury, and the collapse of the International Monetary Convention, which is now practically assured, may render it imperative upon Mr. Cleveland to convene Congress before the statutory time. The people also expect tariff amelioration as speedily as possible, and. I anticipate that at all events the Free Wool Bill will pass. It is now before the Senate. I also enclose copy of correspondence with the local Post Office regarding the loss, by fire, of a portion of the Australian mail by the " Mariposa," which was brought to my attention by the following despatch, dated Chicago, 17th November : — " Superintendent Montgomery to-day received information about a lot of foreign mail which has been missing, and causing some trouble. A storage-car attached to the train from San Francisco to Chicago, with domestic and Australian pouches, was destroyed by fire near Wells, Nevada, on 28th October. The investigation shows that all but one bundle of mail from Brisbane and Adelaide was destroyed, together with much domestic paper-mail. New Zealand, Melbourne, Launceston, and Sydney mails were recovered, and have been forwarded." The accompanying correspondence throws some further light on this accident. The Postmaster of San Francisco, General Backus, also sent Mr. Cooper, the despatching foreign-mail clerk, to explain matters further. It appears from Mr. Cooper's statement -to me, that the entire closed mails for England &,c, had been checked direct from the ship to the train, and were placed in the regular mail-car. These went through without loss or detention, and were shipped at New York by the regular outgoing steamer. The pouches lost were made up of correspondence addressed to places in America and Canada, which had come in the bags addressed to the local office here and was trifling in quantity, No registered letters were among these, and one of the pouches only contained way-bills, so far as he remembered. The New Zealand and Australian mail for Europe was intact. The car, with its contents, was entirely consumed, and so rapid was the spread of flames that it was with the utmost difficulty that the man who was in it was saved. A decision has been rendered by the Court of Claims, at the suit of the Pacific Mail Company, for $118,583 against the United States Post Office Department, and the claim has been referred to the Postal Audit Office to compute the exact amount due for additional compensation for conveying the United States mail to Australia from 9th October, 1875, to 26th September, 1885. The Court held that the company was entitled, under the statutes, to the entire sea and inland postages, plus the postage of the receiving country when charged, but ruled that the statute of limitations barred the payment of any claim prior to six years from the filing of the demand. I have only seen the telegraphic summary of this ruling, but I think it governs to some extent the question of payment by the United States since 1885. This decision is generally important, because it will prevent the Washington department from fixing an arbitrary amount, without reference to the law, as compensation for ocean-mail transportation in future. The Australian service has suffered greatly from persistence in this policy by every Administration up to one year ago. * .•!; * * * Owing to delay on the Atlantic passage, the "Monowai" cannot get away before Saturday. I have, &c, W. Gray, Esq., Secretary, Post Office, Wellington. Bobt. J. Ceeighton.

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Enclosure 1 in No. 70. Mr. Ceeighton to the Supeeintendbnt of Fobeign Mails, Washington. Sic, — San Francisco, 9th December, 1892. I have the honour to state that I am in receipt of advices from the New Zealand Post Office Department to the effect that the London Post Office absolutely refuses to continue its contribution to the San Francisco-Australian mail service, except upon Postal Union terms, and has also, without notice, treated the Atlantic service, so far as the Australian mail is concerned, as an exceptional one, under Article 4 of the Postal Union Convention, which has the effect of reducing the payments by the London Post Office for conveyance of the British closed mail from lOfr. 12c. per kilogramme for letters and post-cards to lOfr., and from 67c. to 50c. per kilogramme for other articles. A protest has been made by New Zealand against this reduction, but, as it is in the line of settled policy antagonistic to the San Francisco service as a mail-route from England to the British settlements in the South Pacific, it is not at all probable that it will be effective, as it is evident that the London Post Office will give no more to the American postal route to Australia than it is absolutely forced to do, regardless of equity or the exceptional postal advantages secured to New Zealand by the service. I am also advised that the Postmaster-General of New Zealand, upon the final decision of the London Post Office being officially communicated to him, requested New South Wales to contribute £5,000 ($25,000) annually towards the San Francisco service, to make good the deficit caused by the reduction in the London payments, basing his request upon the fact that, as Sydney is the terminus of the line, New South Wales enjoys the greatest measure of commercial advantage from its continuance. After prolonged negotiations the Sydney Government agreed to pay £4,000 ($20,000) for the current year only ; stipulating, however, that this amount should cover gratuities heretofore paid to the contract steamers for conveying the New South Wales intercolonial mail to Auckland. This latter amount is not large, but it will reduce the earnings of the through steamers by just so much. As the matter now stands, although New South Wales has agreed to contribute a trifle more for the current year than it contributed last year by letter-weight, its total payment will fall short of making good the London deficit by several thousand dollars, and this loss falls upon the steamship owners who perform the Pacific Ocean service. Under these circumstances, it is not surprising that the steamship companies have simply agreed to carry on the service provisionally, in the hope that the United States Congress would appropriate a sufficient amount to put it upon a permanent and efficient basis in the interest of American commerce, which would receive a fatal blow in the South Pacific if the direct New Zealand and Australian mail-service from San Francisco were abandoned, or the American steamships were withdrawn. Whether this hope is well founded remains to be seen ; meanwhile the steamship companies, I am informed, are running the service at a pecuniary loss; and unless Congress comes to the rescue, and places the line upon an independent basis, without reference to either London or Australian postal payments, which are now at a minimum, and which will probably cease after the current year, I am advised that the mail-steamers will be withdrawn. Wherefore it follows that direct postal communication between the United States, Samoa, New Zealand, and Australia will be cut off, causing serious loss of prestige to American shipping and inflicting lasting injury upon American commerce. I need not repeat in this place the history of the San Francisco mail-service, which, as you know, was established, and has been maintained for over twenty years, through the enterprise and liberality of New Zealand, aided for part of the time by New South Wales; but I avail myself of this opportunity to present some new facts to sustain the point I have made in previous correspondence, and which I desire to emphasize in this communication—namely, the necessity for the United States Government, through the Post Office Department, taking prompt measures to sustain the Australian mail-service, as at present established, as an American ocean postal line, if American trade is henceforth to include within its sphere of operation the rich and progressive Anglo-Saxon commonwealths of the South Pacific. New South Wales, the one contributing Australian Government, withdrew from the San Francisco contract-service in 1890, because, in the first place, it is independent of the American route for postal purposes, as it enjoys a weekly mail-service with Great Britain and the Continent of Europe via the Suez Canal; second, because it objected to contribute indefinitely to maintain a mail-service via the United States of America to which the latter country, although the chief beneficiary, persistently refused to contribute an equitable, or even a reasonable share of the cost; and third, because it had the promise of a more rapid Pacific Ocean service by swift steamships of large tonnage to be placed upon a new postal and commercial route between Vancouver, 8.C., and Australia, touching at Honolulu, Fiji, and New Caledonia, with a branch line from Fiji to New Zealand, the permanence and profits of such service to be guaranteed by sufficient subsidies from Great Britain, Canada, and one or more Australian Colonies. Negotiations for this service, in opposition to the American line, are known to be in progress between New South Wales and the Dominion Government, hence the refusal by London and Sydney to guarantee the payment of any sum to the San Francisco mailroute beyond the current year, and the limiting of current payments to the smallest possible amount. The burden of continuing the San Francisco mail-service to Australia is therefore thrown upon New Zealand ; but that country does not feel justified, under existing conditions, in increasing its present payments, because, although valuable as a postal service, it derives very little commercial advantage from the line, while the United States, which is so largely interested in it as a postal and commercial route, does so little to sustain it. New Zealand has already paid several million dollars in subsidies to American steamship companies to maintain an efficient service, and has

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antagonized to some extent the Imperial postal authorities by insisting upon upholding the American connection when the Australian Government abandoned it. For these reasons New Zealand is not disposed to make further sacrifices to maintain a connection to which, apparently, the United States attaches so little importance. The present condition of the service is therefore eminently unsatisfactory, and its very existence now is entirely due to the public spirit and enterprise of the steamship contractors on the Pacinc Ocean route, who have been virtually penalised during the past two years for their enterprise and public spirit by being compelled to defray one-half of the overland transit charge on the closed Australian mail between San Francisco and New York, amounting in 1891, for eleven mails, to $8 626 This penalty, for such in effect it is, will be heavier for the contract year ]ust closed, while the payment by weight for ocean carriage of the mail on colonial account will be considerably less than in 1891, owing to reduction in the rate. The prospect for the current year is still more unsatisfactory to the steamship contractors, because of the adoption by the London Post Office of Postal Union rates, and the further fact that the United States Post Office continues to collect, under agreement with the British Government, concluded in 1876, a rate for transportation of the closed British and Australian mail across America largely in excess of the territorial charges sanctioned by the Postal Union. To recoup itself in part for such payment, a deduction of one-half the charge between San Francisco and. New York, as already explained, is made by the New Zealand Post Office from the greatly reduced earnings of the steamships. , ... I recognise the fact that this territorial transit service is classed " extraordinary ,_ tor which special rates may be charged; but there are special circumstances connected with it which, 1 respectfully submit, make it altogether exceptional, and which should entitle it to be so regarded by the United States Post Office, not the least significant of which is the fact that the payment of this charge to Washington, by the London Post Office, is the medium by which the latter expects to break down the San Francisco mail-service, and cut off the United States from direct postal and commercial intercourse with the British colonies of Australia. When the Convention regulating the American transit charges on the closed British-Australian mail was entered into between the United States and England, the latter had agreed with the contracting colonies to bear the entire cost of conveyance between London and San Francisco tor a term of years, and, as the colonies then had no direct interest in the matter of American transit charges, they were not consulted as to terms. If they had been consulted, or if they had had an understanding that they would be subsequently called upon to pay these charges m excess of Postal Union rates, as is now the case, the terms embodied in the agreement between the United States Post Office and Great Britain would probably not have been assented to. When New South Wales withdrew from the San Francisco service the weight of this payment fell upon New Zealand, and its efforts to have it either abolished or reduced failed, as you are aware although the Postmaster-General strongly recommended the latter course, and was not opposed to the fullest possible concession to New Zealand, in view of its uniform friendship for the United States. But Congress did nothing in the premises; and it is now estimated that New Zealand must pay the United States Postal Department, through the London Post Office, for the contract year ending 15th November, 1893, at least £6,000 ($30,000) as its share of the overland transit charges, while the steamship contractors will be compelled to contribute between $8,000 and $9 000 of their earnings. This, I venture to suggest, is a condition which should_ not exist. It is a heavy premium for New Zealand to pay for the privilege of sending and receiving its British mails across United States territory, and at the same time protecting American trade with Australia, when it might use the eastern route without any corresponding charge. Ihe American transit rate is 2s. 3£d. (55c.) per pound for letters, and B£d. (17c.) for other articles. However, as it is probable that the service will be abandoned at an early date, it is perhaps superfluous to discuss either the policy of continuing this special charge or its amount. It will have accomplished its purpose in this respect; but I venture to predict that no such fine will be imposea upon the Australian mail-service by Canada after a Dominion line to Sydney shall have supplanted the American line from San Francisco. I trust I shall be excused for presenting the urgency of the case in such strong terms but as 1 feel that this may be the last appeal I shall be privileged to make on behalf of the Australian mailservice from San Francisco I desire to make the exact position clear. It is in the power of Conoress to put the Australian mail-service upon a permanent and efficient basis, and unless this be done without unnecessary delay it must break down. The contractors may run their ships during the current year, as the Columbian Exhibition holds out some prospect of increased passenger traffic, but beyond this there is nothing in the business to maintain the service, which involves a voyage of 7,200 nautical miles between terminal ports, and is without local traffic to supplement the earnings of the trunk line. And it has been pointed out that neither England nor the Australian Colonies are willing to contribute to sustain it in competition with _ exclusively British steamship lines for commercial reasons, if not also for broad political considerations. _ The indifference which the United States has shown to the Australian mail-service from first to last is in striking contrast to the paternal and fostering care of England towards the competing British lines to Australia by the Eastern route. The present contract for the Federal service between London and Australia, by the ships of the Peninsular and Oriental Company and those of its commercial rival, the Orient Steamship Company, calls for the annual payment of £170,000 ($B5O 000) of which the Imperial Post Office contributes £95,000 ($475,000) and the contributing Australian Colonies £75,000 ($375,000), the latter sum being apportioned on the basis of population Up to 1885 (writing from memory), the United States Post Office paid for the conveyance of the American mail to New Zealand and Australia a sum gradually increasing from about $4,000 to $13 000 per annum, in round figures ; from 1885 to 1888 it paid $20,000 a year; from 1888 to 1891 payment was made at the rate of $50,000 per annum, a fixed percentage of which went to the con-

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tracting colonies in reduction of steamship subsidies; and from 1891 up to the present time the yearly payment has been fixed at $60,000, all of which goes to the contractors, who receive no colonial subsidy. During the same period, New Zealand has paid in subsidies, gratuities, &c, between three and four million dollars, and New South Wales about two million dollars additional. These large sums were expended by the Governments named for the purpose of establishing a short mail-route to England via San Francisco and New York, and at the same time opening and maintaining direct commercial intercourse with the United States, which did not reciprocate. It was not slow, however, to avail itself of the postal and commercial facilities provided by the enterprise of the British communities named above, without paying anything like the legal earnings of the steamships for conveying its large and important mail, while making, at the same time, a revenue out of the colonies and Great Britain in excess of its total disbursements for sea-postages in the shape of territorial transit-charges, to which reference has already been made. This policy on the part of the United States is solely responsible for the existing unsatisfactory condition of the Australian service, and for its impending collapse, which menaces American trade in the South Pacific —a trade which practically owes its existence to the direct mail line of steamships from San Francisco to Sydney. The volume and value of this trade can be ascertained by reference to the statistics of foreign commerce, published by the Treasury Department, for the fiscal year ended 30th June, 1892. These statistics show that the value of American domestic exports to Australia during 1891-92 was $11,386,667 ; merchandise imports, $8,492,306 ; total, $19,878,973 : balance in favour of American trade of $2,894,361. Compared with any South American country this exhibit discloses a far larger volume of trade, except in the case of Brazil; and American exports to Australia come within $3,000,000 of the year's export to Brazil, while the balance against the United States in the Brazilian trade on the year's transactions was $104,343,834. The Australian trade of the United States for the year in question was in excess of American trade with all African countries combined ; and the exports of American domestic merchandise to Australia and New Zealand in the last fiscal year exceeded the combined export of domestic products to' China and Japan by $2,926,204, the balance of trade with China and Japan being also largely against America. But this is not all. During 1891-92 Australia sent $8,913,024 in gold coin and bullion to San Francisco, or 1280 per cent, of the total imports of gold and silver, and drew no coin in return; whereas the net export of gold and silver coin and bullion to South and Central America, Hong Kong, Japan, and China for the same period was $9,617,464, an amount somewhat in excess of the net gold imports from Australia. These figures demonstrate the present importance of Australian trade to the manufacturers and producers of the United States. This trade is only in its infancy; that is, it has not been developed, because the imports and exports of Australia aggregate in excess of $600,000,000 per annum, and the ratio of American trade to this total is unnecessarily low. If the United States were to follow the example of England with its ocean postal routes, and pay a postal subsidy to an American steamship line to enable it to compete upon equal terms in respect of tonnage, speed, and equipments with the British lines to Australia and New Zealand, and the projected Canadian-Australian line, for a sufficient term of years, American trade with Australia might be easily trebled within that period, while the vast stream of travel between England and South Pacific countries would be largely diverted to the San Francisco route, to the great benefit of American trade and industries. Might I request that you would do me the favour, after perusal of this communication, of submitting it to the Postmaster-General for his consideration, in the hope that he may deem it expedient to refer it to the proper Congressional Committees, together with such comments and recommendations as he may be pleased to make thereon. The urgency of the case is my excuse for troubling you with this long communication and closing request. I have, &c, Eobt. J. Ceeighton, Hon. N. M. Brooks, Eesident Agent, New Zealand Government. Superintendent, Foreign Mails, Washington, D.C.

Enclosure 2 in No. 70. Mr. Ceeighton to the Postmaster, San Francisco. Deak Sib,— San Francisco, 26th November, 1892. A few days ago a telegraphic despatch from Chicago was published, intimating that a fire in a storage car near Wells, Nevada, had destroyed a portion of the Australian mail ex " Mariposa," and that the New Zealand, Melbourne, Launceston, and Sydney mails had been recovered and forwarded. The Adelaide and Brisbane mail was reported destroyed, together with much domestic papermail. Could you kindly inform me whether there was any detention in forwarding the "recovered " portion of the mail; whether it was injured, and if so to what extent; also particulars regarding the " destroyed " portion, together with the origin of the fire so far as may be known to the department. If necessary to telegraph to Chicago I would thank you to inform me also, as I desire to report to the New Zealand Government per " Monowai." Eespectfully yours, Hon. Samuel W. Backus, Bobt. J. Cbeighton, Postmaster, San Francisco, California. Eesident Agent for New Zealand.

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Enclosure 3 in No. 70. The Postmaster, San Francisco, to Mr. Ckeighton. San Francisco Post Office, Office of the Postmaster, San Francisco, Cal., Dear Sib,— 28th November, 1892. Replying to yours of the 26th instant concerning certain mails which are said to have been destroyed in a storage car near Wells, Nevada, I beg to state that I am not in possession of any official information concerning the disaster. In response, however, to an inquiry from the Superintendent of Foreign Mails, I addressed a communication to that official, under date of 18th November, stating what I had been able to learn of the circumstances. I beg to transmit to you herewith a copy of that letter. I have to further inform you that a copy of your letter has been transmitted to the Superintendent of the Eailway Mail Service, with request that a specific report be furnished concerning the amount of mail lost and that which was rescued. Upon the receipt of same I will hasten to transmit it to you. In the meantime, I remain, &c, Eobt. J. Creighton, Esq., Samuel W. Backus, Eesident Agent, New Zealand Government, San Francisco, California. Postmaster. Sub-enclosure. The Postmaster, San Francisco, to the Superintendent of Foreign Mails, Washington. San Francisco Post Office, Office of the Postmaster, San Francisco, Cal., Sir,— 18th November, 1892. I have the honour to acknowledge receipt of your letter of the 12th instant. The missing mails for Windsor, Canada, were probably, with the other mails, destroyed by the burning of a storage mail-car on the Ogden and San Francisco R.P.0., near Wells, Nevada, on the evening of 28th October last. This train left San Francisco on the evening of 27th October, and carried all the mails for eastern destinations received ex s.s. " Mariposa " on that date. The Superintendent of Railway Mail Service for this division turned into this office on the 3rd instant the following mails, which were recovered from the wreck—viz. : One package letters and letter-bills for New York, from Adelaide, under date of the 29th of September; one package of letters and letter-bill for Chicago, from Brisbane, under date of the 30th of September; three packages of letters and letter-bill for Windsor, Canada ; from Brisbane, under date of the 30th of September. The letter-bill from Brisbane for Canada contained an entry of four registered articles, but they were not turned into this office. The recovered letters were " officially sealed " where necessary, postmarked, and forwarded to destinations. The letter-bills for Chicago and New York were sent to those offices with an explanatory letter, and the letter-bill for Windsor, Canada, was transmitted with a " bulletin of verification " to that office. I enclose herewith a copy of letter-bill from this office for Windsor, under date of 27th October, showing the number and character of the closed mails forwarded hence on that date. The New York office has advised me of the non-receipt of one bag from Adelaide for London, one bag from Adelaide for New York, and three bags from Queensland for New York. The Chicago, Boston, and Windsor offices have not returned the way-bills of this office. Very respectfully, Hon. N. M. Brooks, Samuel W. Backus, Postmaster. Superintendent, Foreign Mails, Washington, D.C.

Enclosure 4 in No. 70. The Postmaster, San Francisco, to Mr. Creighton. San Francisco Post Office, Office of the Postmaster, San Francisco, Cal., Dear Sir, —- Ist December, 1892. Eeferring to mine of 28th November, I beg to herewith transmit to you a copy of letter just received by me from Samuel Flint, Superintendent of the Eailway Mail Service of this city, which you will find to be self-explanatory. In case I come into possession of any further information, I will at once transmit it to you. Respectfully yours, Samuel W. Backus, E. J. Creighton, Esq., Postmaster. Resident Agent, New Zealand Government, San Francisco, California.

Sub-enclosure. The Superintendent of the Eailway Mail Service, San Francisco, to the Postmastbe, San Francisco. Eailway Mail Service, Office of Superintendent, Eighth Division, San Francisco, CaL, Sir,— 30th November, 1892. Eeferring to yours of the 29th instant, with accompanying letter from Eobert J. Creighton, Resident Agent for New Zealand, relating to the destruction of mail by fire on the Ogden and San Francisco Eailway Post Office: this fire occurred on 28th October in the storage mail-car of that

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line. The foreign mail despatched by train No. 3, 27th October, was placed in a baggage-car, with the exception of a few sacks that the baggage-car would not hold, which, together with the domestic mail in the storage mail-car, including all made-up Eastern States mail for that day, did not exceed a hundred and fifty sacks, so while it is not possible to state the number of foreign sacks burned, it is an assured fact that the number was very small. Scarcely any mail was recovered from theburnt car, but such of it as was we forwarded to addresses with a poster, as per sample herewith enclosed. The origin of the fire investigation , failed .to disclose. Very respectfully, General Samuel W. Backus, Samuel Flint, Superintendent. Postmaster, San Francisco, California.

Enclosure 5 in No. 70. Mr. Ceeighton to the Postmasteb, San Francisco. Deae Sic, — San Francisco, Ist December, 1892. I beg to acknowledge the receipt of your letters of 28th November and of even date, together with enclosures, in reply to my communication of the 26th ultimo, for which please accept my best thanks. I remain, &c. Eobeet J. Ceeighton, Hon. Samuel W. Backus, Eesident Agent, New Zealand Government. Postmaster, San Francisco, California.

Enclosure 6 in No. 70. Exteact from President Haeeison's Message to Congeess. "Wβ have had, by reason of connections with the transcontinental railway lines constructed through our own territory, some advantages in the gain of trade on the Pacific that we did not possess on the Atlantic. The construction of the Canadian Pacific Eailway, and the establishing, under large subventions from Canada and England, of fast steamship service from Vancouver with Japan and China, seriously threaten our shipping interests on the Pacific. This line of English steamers received, as stated by the Commissioner of Navigation, a direct subsidy of $400,000 annually, or $30,767 for each trip of thirteen voyages, in addition to some further aid from the Admiralty in connection with contracts by which the vessels may be used for naval purposes. The competing American line, the Pacific.Mail, under the Act of 3rd March, 1891, receives only $6,389 per round trip. Efforts have been made within the last year, as I am informed, to establish under similar conditions a line between Vancouver and some Australian port, with a view of seizing there a trade in which we have had a large interest. The Commissioner of Navigation states that a very large percentage of our imports from Asia are now brought to us by English steamships and their connecting railways in Canada. With a view of promoting this trade, especially in tea,. Canada has imposed a discriminating duty of 10 per cent, on tea and coffee brought into the Dominion from the United States. If this unequal contest between American lines without subsidy or with diminished subsidies, and the English-Canadian line, to which I have referred, is to continue, I think we should at least see that the facilities of Customs entry and transportation acrossour territory are not such as to make the Canadian route a favoured one, and that the discrimination as to duties, to which I have referred, is met by a like discrimination as to the importation of these articles from Canada."

No. 71. Mr. Gkay to Mr. Cbeighton. Post Office and Telegraph Department, General Post Office, Wellington, Sic,— 26th January, 1893. I have to acknowledge your letter of the 9th ultimo, enclosing a copy of your letter to the Superintendent, Foreign Mails, Washington, re present status and future prospects of the San Francisco mail-service; also extract from President Harrison's annual message to Congress re postal routes, &c, which have been read by the Postmaster-General. Mr. Ward considers your letter and enclosures of such an interesting nature that he has forwarded them to the Hon. the Premier. I hope to be able to send you a further reply by next mail. I have, &c, ' W. Geay, Secretary. E. J. Creighton, Esq., Eesident Agent for New Zealand, San Francisco.

No. 72. Mr. Geay to Mr. Ceeighton. Post Office and Telegraph Department, General Post Office, Wellington, Sir,— 6th February, 1893. Adverting to my letter of the 26th ultimo, I have now the honour to inform you that your letter of the 9th December last and enclosures were read by the Hon. the Premier, and that the copy of your communication to the Superintendent of Foreign Mails, Washington, in reference to 6—E. 6.

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the present status and future prospects of the San Francisco mail-service, particularly interested Mr. Ballance, who recognises the very great trouble you have taken to prevail on the postal authorities of the United States to subsidise the service in a befitting manner. It is to be hoped that your representations may have the desired effect. I have, &c, E. J. Creighton, Esq., W. Geay, Secretary. Eesident Agent for New Zealand, San Francisco, California.

No. 73. Mr. Ceeighton to Mr. Geay. Deae Sib,— San Francisco, 32th February, 1893. I have the honour to inform you that under date of the 4th January, 1893, I received the .accompanying letter from the Superintendent of Foreign Mails, informing me that my communication on the subject of the mail-service had been submitted to the Postmaster-General at my request, and that it would receive his serious personal consideration. Since then I have received no further communication from Washington, and recent events on the Hawaiian Islands, culminating in the abolition of the monarchy and an appeal to the United States to annex the country, will doubtless ■occupy the full attention of the Cabinet until the inauguration of President Cleveland. I have, &c, W. Gray, Esq., Secretary, Post Office, Wellington. E. J. Ceeighton. i

Enclosure in No. 73. The Supeeintendent of Foeeign Mails, Washington, to Mr. Ceeighton. Post Office Department, Office of Foreign Mails, Washington, D.C, Sib,— 4th January, 1893. I have the honour to acknowledge the receipt of your letter of the 9th ultimo, relative to the importance of this Government properly sustaining the present direct mail-service between San Francisco and the Australasian Colonies, and to inform you that, in compliance with your request, your letter has been brought to the personal attention of the Postmaster-General, who instructs me to say that it will receive his serious consideration. I am, &c, N. M. Bkooks, Eobert J. Creighton, Esq., Superintendent of Foreign Mails. Eesident Agent for New Zealand, San Francisco, California.

No. 74. Mr. Geay to Mr. Ceeighton. Post Office and Telegraph Department, General Post Office, Wellington, Sib,— 10th March, 1893. I have the honour to acknowledge the receipt of your letter of the 12th ultimo, enclosing that of the 4th January from the Superintendent of Foreign Mails to yourself, notifying that yours of the 9th December on the San Francisco service had been submitted to the Postmaster-General for his serious personal consideration. The Hon. the Postmaster-General is very pleased to think that your letter has so far received the attention it deserves. Such is its clearness and succinctness that he hopes to hear by an early mail of its very favourable reception by the United States Government. * * ' * * * * I have, &c, E. J. Creighton, Esq., W. Geay, ' Secretary. Eesident Agent for New Zealand, San Francisco, California.

No. 75. 'The Secbetaby, General Post Office, Wellington, to the Supebintendent of Fobeig-n Mails, Washington. Post Office and Telegraph Department, General Post Office, Wellington, 'Sib,— 22nd March, 1893. I shall be much obliged if you will inform me what is the rate paid by your department to the contractors of the San Francisco mail-service since the commencement of the present year's renewal for the carriage of United States mails to the Australasian Colonies and Honolulu. The Superintendent, Office of Foreign Mails, I have, &c. Post Office Department, Washington, D.C. W. Gbay, Secretary.

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No. 76. Mr. Gray to Mr. Ceeighton. Post Office and Telegraph Department, General Post Office, Wellington, Sic,— 22nd March, 1893. If you are able to do so, I shall be much obliged if you will inform me what is the exact rate paid to* the contractors for the San Francisco mail-service by the United States Post Office, since the commencement of the present year's renewal, for carriage of United States mails to the Australasian Colonies and Honolulu. I have, &c, E. J. Creighton, Esq., W. Gray, Secretary. Eesident Agent for New Zealand, San Francisco, California.

No. 77. Mr. Cbeighton to Mr. Gbay. :g IE; San Francisco, 24th April, 1893. I have the honour to enclose copy of correspondence with the United States Postal Department in reference to the continuance of the San Francisco mail, supplemental to my letter of 9th December, 1892, the receipt of which, together with an intimation that it had met with the approval of Mr. Ward, has been acknowledged by you. As you will perceive, I have taken advantage of cable advices through the Canadian Pacific to impress upon Mr. Bissell, the new PostmasterGeneral, the urgency of the case, and to enlist the Administration in support of a sufficient subsidy to maintain an efficient service. The action taken by the Postal Conference, to which I have referred, was opportune, and favourable to the position I have taken throughout my correspondence with the United States Government. I have not received a reply to either letter, and, of course, can form no opinion of the action which Mr. Bissell may recommend. I hope it may be favourable to strengthening the service, for should' he advise the payment of a sufficient stfbsidy the new Congress would appropriate the funds. Eeferring to your letter, of 22nd March, I beg to state that the United States Government nominally pays the contractors. $60,000 for thirteen outward trips of the mailsteamers for transporting the American mail to New Zealand, Australia, &c, but makes a deduction of $1,000 for each trip of the " Monowai," or any other vessel so employed which is not on the American register. A similar deduction was made on the postal earnings of the " Zealandia " while that ship was on the Australian postal route. If, however, only American ships were employed, they would be paid the full amount of sea and domestic postage, computed at $60,000 per annum. The Post Office Act limits the payment for ocean mail-service by foreign ships to sea-postage. Since the five-cent letter-rate went into operation, however, the postages do not aggregate $60,000, according to the weights published by the Superintendent of Foreign Mails, but the payment is made under the order of Mr. Wanamaker, issued prior to the change from the twelve-cent to the five-cent rate. In this relation I should be pleased to know whether the United States Post Office makes, or has made, any charge or demand upon the colonies for sea transits, under the Postal Dnion rules, either before or since the entrance of New Zealand and Australia into the Postal Union, and, if so, at what rates and to what amount. Would you also inform me at the same time the amount which the London and colonial Post Offices have paid the United States on account of overland transit charges, and at what rate. As questions may soon arise upon those points, I should be prepared with an exact official statement. Messrs. Spreckels have received a cable from the Union Steam Ship Company intimating that the new Canada-Australian line was advertised to begin its sailings from Brisbane on 10th May, four days before the " Alameda "is to sail from Sydney. I suppose this line will receive a subsidy from Queensland and Canada. It will be of no commercial value to New Zealand, and none whatever as a postal route, unless you should establish a fork service to Fiji. I have, &c,, BoBEBT J. CeEIGHTON. W. Gray, Esq., Secretary, Post Office, Wellington, New Zealand.

Enclosure 1 in No. 77, Mr. Cebighton to the Superintendent of Foreign Mails, Washington. -g IE San Francisco, Bth April, 1893. I have the honour to inform you that the New Zealand Postmaster - General [see No. 53] has advised me that he approves of the change of the day of sailing of the Australian mail-steamer from San Francisco to Thursday, in consequence of the accelerated speed on the Atlantic, thereby saving one day in transit between London and the colonies. The first ship on the new'time-schedule will be the " Mariposa," which is advertised to sail on Thursday, 27th April. I note, however, that instructions have been received by the San Francisco Post Office from your bureau to advertise the steamer-sailings on the new schedule. I beg to call your attention to a Press despatch, of which the following is a copy : " New line to Australia : Vancouver, 8.C., 7th April.—The announcement that arrangements are completed for a line of steamers between Australia and Vancouver was received here with satisfaction. It is stated that the steamers that will be put on are the ' Warrimoo ' and the ' Miowera,' owned by the New Zealand and Australian Steamship Company. The first steamer is to leave Sydney 10th May."

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The vessels named in this despatch are new, having been in commission less than a year. They were built at Newcastle, England, to the order of Btuddart, Parker, and Co., of Melbourne, to> run in the Australian and New Zealand trade in opposition to the Union Steam Ship Company of New Zealand, one of whose ships, the " Monowai," is employed under contract with the New Zealand Government in the Australian mail-service between San. Francisco, Auckland, and Sydney. These ships have a speed of sixteen knots, have fine passenger accommodation, and cargo capacity, including bunkers, of about 3,900 tons. They have been employed in the intercolonial trade since their appearance in Australian waters; but now it seems that they have been chartered by theCanadian Pacific Company (although not so stated), whose general freight agent went down to Australia for this purpose three months ago. It therefore follows that the long-threatened opposition to the Australian mail-seifvice by American ships from an American port is to be inaugurated by a heavily-subsidised Canadian company at a time when the American line has been almost forced to withdraw from the enterprise through the want of support and encouragement from Congress, the abandonment of the American postal route by Australia, and greatly reduced payments by New Zealand, combined with a steady falling-off in travel in favour of the Eastern route via Suez, and decline in freight through the operation of the McKinley tariff on the one hand and the retaliatory tariff of New South Wales on the other. It only needs an opposition of the character indicated in the foregoing despatch to cause the abandonment of the American-Australian service on the termination of the current contract with New Zealand next October, and such abandonment means surrender of American trade with Australia to the Dominion of Canada, whose subsidised steamships can afford to run upon conditions that would be ruinous to American ships which receive no subsidy from the Post Office. Department. I shall not repeat in this place the arguments used by me in support of a liberal policy towards this service by the American Government in my letter of 9th December, 1892, but I desire to respectfully invite attention to them in the hope that the Hon. Postmaster-General may give the matter serious consideration. It is very clear to me that this is a question of national importance, involving special conditions which should be specially dealt with. To apply a general rule of policy to the Australian postal service, unless such rule should provide for the maintenance of the American service, and, therefore, the control of the American trade with Australia in American hands, would be to extinguish it in time. It has only been maintained in efficiency in the past through the liberality of New Zealand, and it is becoming, or, indeed, has already become, a mere provisional or temporary service, because that Government objects to bear the burden of cost while deriving the smallest measure of advantage. In this relation I may add that the wish and hope of New Zealand is that the United States would take such action in the premises as would render the service not only permanent but beyond the risk of failure through Canadian or other opposition, to the end that commercial relations with America might be strengthened and increased. Might I request you to submit this letter, together with my communication of 9th December,. 1892, to the Hon. Postmaster-General for his consideration. I have, &c, Bobt. J. Cbeighton, Hon. N. M. Brooks, Agent, New Zealand Government. Superintendent of Foreign Mails, Washington, D.C.

Enclosure 2 in No. 77. Mr. Cebighton to the Supebintendent of Fobeign Mails, Washington. Sic,— San Francisco, 18th April, 1893. Supplementing my letter of the Bth instant, I have the honour to inform you that by the last mail I received advices from New Zealand, of date 23rd March [not printed], informing me that at the late Intercolonial Postal Conference held at Brisbane, Queensland, at which representatives from New Zealand were present, a resolution was adopted unanimously expressing the astonishment of the Conference that the United States Government had continuously refused to subsidise the San Francisco service adequately; also that a further resolution had been adopted authorising negotiations to be opened for a Canadian mail-service. I deem it my duty to bring these facts to your notice, as they have a very direct bearing upon the continuance of the American mail and steamer line to Australia. I have already written of the projected Canadian line, and unless some action be speedily taken to avert the danger, I am prepared to see the San Francisco service abandoned, and the United States dependent upon. Canada for its mail-transportation to the Antipodes. I have, &c, Eobebt J. Cbeighton, Hon. N. M. Brooks, Agent, New Zealand Government. Superintendent of Foreign Mails, Washington, D.C.

45

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No. 78. The Hon. the Postmaster-General, Wellington, to Messrs. J. D. Speeckels and Bbos. Company, San Francisco. Post Office and Telegraph Department, General Post Office, Wellington, Gentlemen, — 6th June, 1893. I was about to reply to a letter from Mr. Creighton of the 24th April last, covering two others to the postal authorities of the United States in continuation of his indefatigable and very able advocacy of the claims of the San Francisco mail-service upon their consideration and theresources at their command, when I received the cable-message announcing his lamented death. I write now only to express my sincere sorrow at Mr. Creighton's demise. He was an assiduous worker; and the Government could not at any time have desired a more faithful exponent of its wishes or requirements. I hope to receive, by an early mail, full particulars in connection with his death. I have, &c, A. J. Cadman, Messrs. J. D. Spreckels and Bros. Company, For the Postmaster-General. 327, Market Street, San Francisco.

No. 79. The Superintendent of Fobeign Mails, Washington, to the Hon. the Postmaster-General,. Wellington. Post Office Department, Office of Foreign Mails, Washington, D.C, Sib,— 20th April, 1893. Eeferring to your letter of the 22nd ultimo, requesting to be advised of the rate paid by this department to the contractors of the San Francisco mail-service since the commencement of the present year's renewal for the carriage of the United States mails to the Australasian Colonies and Honolulu, I have the honour, by direction of the Postmaster-General, to inform you that there has been no change recently in the rate in question; the Oceanic Steamship Company being allowed the whole amount of postage collected on the mails conveyed in vessels of United States register, and only the sea-postage on the mails conveyed in vessels of foreign register; these sums being the maximum allowable by law to be paid for the sea-transportation of United States mails for foreign countries when conveyed by vessels not under regular contracts with this department. The total amount of postage collected on the mails in question is estimated to be $60,000 per annum, and this sum, less $1,000 for each trip performed by a vessel of foreign register, is paid to the Oceanic Steamship Company by this department. As four trips per year are usually made by a vessel of foreign register, the actual annual payments amount, as a rule, to $56,000. I am, &c, N. M. Brooks, The Postmaster-General, Wellington, New Zealand. Superintendent of Foreign Mails.

No. 80. The Sbcbetaby, General Post Office, Wellington, to the Superintendent of Foreign Mails,. Washington. Post Office and Telegraph Department, General Post Office, Wellington, Sib,— 19th June, 1893. I have the honour to acknowledge receipt of your letter of the 20th April, and in reply to thank you for the information conveyed therein relative to the rate paid by your department to the contractors of the San Francisco mail-service since the commencement of the present year's renewal for the carriage of United States mails to the Australasian Colonies. I have, &c, The Superintendent, Office of Foreign Mails, W. Geay, Secretary. Post Office Department, Washington, D.C.

NEW ZEALAND POET OP CALL. No. 81. The Secretary, Wellington Chamber of Commerce, to the Hon. the Postmasteb-Gbneeal, Wellington. Sib, — Wellington Chamber of Commerce, Wellington, 24th September, 1892. I have the honour, by direction, to forward to you at foot the copy of a resolution which was unanimously adopted at a general meeting of the Wellington Chamber of Commerce held on the 22nd instant. I have, &c, The Hon. the Postmaster-General, Wellington. S. Cabeoll, Secretary.

Copy of Besolution. "That in the opinion of this Chamber it is expedient that if the postal service vid San Francisco is to be continued a more central port should be adopted in place of Auckland as the port of arrival and departure for New Zealand." 7—F. 6.

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No. 82. The Seoeetaey, General Post Office, to the Secbetaby, Wellington Chamber of Commerce. Post Office and Telegraph Department, General Post Office, Wellington, Sir,— 4th October, 1892. I have the honour, by direction of the Postmaster-General, to acknowledge the receipt of your letter of the 24th ultimo, forwarding copy of a resolution passed at a meeting of your Chamber on the 22nd idem, in reference to the port of arrival and departure of the mails via San Erancisco, in New Zealand. In reply thereto, I am to inform you that it is left to the contractors to choose the port of arrival and departure, a right which was given them under the mail-service resolutions agreed to by the House of Eepresentatives last session. I have, &c, The Secretary, Chamber of Commerce, Wellington. W. Gbay, Secretary.

CANADIAN PACIFIC MAIL-SERVICE.

(See No. 43; also No. 50 and No. 77 and enclosures.)

No. 83. The Hon. the Peemieb to the Agent-Geneeal. Sib,-. Premier's Office, Wellington, 18th May, 1893. Adverting to my letter of the 19th ultimo, advising you of the reported negotiations between Messrs. Huddart, Parker, and Co. and the Canadian and New South Wales Governments, for the ■establishment of a mail-service between Australia and Vancouver, I have the honour to inform you that, owing to this colony not having been approached by the promoters, we are still somewhat in the dark concerning the probable result of the negotiations. The service, however, is definitely fixed to commence with the sailing of the "Miowera" to-day from Sydney to Vancouver. The Australian ports of call are, so far, understood to be Sydney and Brisbane, Sydney in each case being the last and the first port of call. The Australian Colonies have, up to the present, refused to subsidise. Should there, however, be an Imperial subvention, it may be considered probable that New South Wales will be induced to contribute, and should this be done Queensland may follow. Press reports state that Messrs. Huddart, Parker and Co. have applied, through the Premier of Canada, for an Imperial subsidy, and I should be glad if you would ascertain the intentions of the authorities in regard to the service. You will be duly advised of any further developments at this end. I have, &c, W. B. Perceval, Esq., A. J. Cadman, Agent-General for New Zealand, London. Eor the Premier.

No. 84. The Hon. the Pbeiiieb to the Agent-Genebal. Sib, — Premier's Office, Wellington, 15th June, 1893. In continuation of my letter of the 18th ultimo, I have now the honour to inform you that the first steamer, the " Miowera," in the Canadian Pacific Australian service sailed from Sydney on 18th ultimo, and from Brisbane on the 20th, for Vancouver. Since the date of my letter, cablegrams have appeared in the Press announcing that the sole reason of the refusal of an Imperial subvention was because none of the colonies had subsidised the service. It is assumed therefore that it was on the representations made by the Agent-General ■of that colony in connection with this refusal" that the Postmaster-General of New South Wales proposed to Parliament, and Parliament adopted, a resolution to assist the Vancouver service by a subsidy up to £10,000 a year. Apparently, there is still no intention to embrace New Zealand in the service, the Government not having been approached either by the Government of New South Wales or the contractors. I have, &c, W. B. Perceval, Esq., W. P. Beeves, Agent-General for New Zealand, London. In the absence of the Premier. Approximate Cost of Paper.— Preparation, not given; printing (1,450 copies), £31.

By Authority: Samuel Costall, Government Printer, Wellington.—lB93. Price Is.}

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Bibliographic details

OCEAN MAIL-SERVICES (FURTHER PAPERS RELATIVE TO). [In Continuation of Papers presented on the 2nd August, 1892.], Appendix to the Journals of the House of Representatives, 1893 Session I, F-06

Word Count
38,049

OCEAN MAIL-SERVICES (FURTHER PAPERS RELATIVE TO). [In Continuation of Papers presented on the 2nd August, 1892.] Appendix to the Journals of the House of Representatives, 1893 Session I, F-06

OCEAN MAIL-SERVICES (FURTHER PAPERS RELATIVE TO). [In Continuation of Papers presented on the 2nd August, 1892.] Appendix to the Journals of the House of Representatives, 1893 Session I, F-06